Apple Hospitality Reit, Inc. · NYSE:APLE
Apple Hospitality Reit — Investor Presentation (August 2025)
52 slides from Apple Hospitality Reit's investor presentation, Aug 11, 2025
Slide 1: Investor Presentation August 2025
AUGUST 2025 • NYSE:APLE INVESTOR PRESENTATION Exhibit 99.1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certain statements made in this presentation are forward-looking statements. These forward-looking statements include statements regarding our intent, belief or current expectations and are based on various assumptions. These statements involve substantial risks and uncert
Slide 3: Company Profile and Proven Investment Strategy
Note: Hotel portfolio statistics as of August 6, 2025. Market categorization based on STR designation. Average Effective Age represents years since hotels were built or last renovated. Average actual age of hotels is 17 years. The Tripadvisor® rating is based on lifetime scores for the Apple Hospita
Slide 4: Key financial and TSR statistics
See following pages for reconciliation to actual revenue and net income. Note: Statistics above compare the Company's performance with the performance of specific industry indices using total shareholder return ("TSR"). Net Total Debt to Total Capitalization calculation based on (as of June 30, 2025
Slide 5: Values and Mission
VALUES Hospitality – We are thoughtful in our interactions with others and know that strong, caring relationships are the core of our industry. Resolve – We are passionate about the work we do and are steadfast in our commitment to our shareholders. Excellence – We are driven to succeed and improve
Slide 6: Proven Investment Strategy
PROVEN INVESTMENT STRATEGY Concentrate on Upscale, rooms-focused hotels Efficient operating model yields higher margins Resilient group business Scale ownership minimizes relative G&A load and provides fixed cost efficiencies Unparalleled access to data and operational expertise Align with the best
Slide 7: Key Takeaways
KEY TAKEAWAYS Achieved second quarter 2025 Comparable Hotels RevPAR of $129, Occupancy of 79% and ADR of $164 Despite macroeconomic uncertainty, the Easter holiday shift and reduced government spending weighing on overall travel demand, fundamentals for our portfolio improved sequentially as we move
Slide 8: Second Quarter 2025 Performance at a Glance
YEAR-OVER-YEAR PERFORMANCE ($ in thousands except statistical data and per share amounts) Second Quarter 2025 Performance at a Glance Note: Comparable Hotels is defined as the 219 hotels owned and held for use by the Company as of June 30, 2025, and excludes the Company's independent boutique hotel
Slide 9: Efficient Operations: Hotel EBITDA Margin and RevPAR Comparison
Upscale/Rooms-Focused YTD June 30, 2025 Hotel EBITDA Margin and RevPAR Comparison Upper Upscale/Full-Service EFFICIENT OPERATIONS HOMEWOOD SUITES NEWARK-CRANFORD Source: Company filings. Assumptions may vary by company. See explanation and reconciliation of Adjusted Hotel EBITDA to net income includ
Slide 10: Net Debt to EBITDA Comparison
Upscale/Rooms-Focused Net Debt to TTM EBITDA Ratio at June 30, 2025 Upper Upscale/Full-Service NET DEBT TO EBITDA COMPARISON COURTYARD SAN DIEGO CENTRAL Source: Company filings. Assumptions may vary by company. See explanation and reconciliation of Adjusted EBITDA to net income included in subsequen
Slide 11: Comparable Hotels Operating Trends
+3% - -2% +4% +2% - -1% +3% - +4% +2% +2% - +1% -2% -4% -1% - % Change in RevPAR Compared to Same Period of Prior Year COMPARABLE HOTELS OPERATING TRENDS Note: Comparable Hotels is defined as the 219 hotels owned and held for use by the Company as of June 30, 2025, and excludes the New York Property
Slide 12: Comparable Hotels Occupancy Trends
Occupancy COMPARABLE HOTELS OCCUPANCY TRENDS Note: Comparable Hotels is defined as the 219 hotels owned and held for use by the Company as of June 30, 2025, and excludes the New York Property recently recovered from a third-party hotel operator. For hotels acquired during the periods noted, the Comp
Slide 13: Weekday vs. Weekend Occupancy
Source: Data provided by STR for hotels owned by the Company for the periods noted and may differ from actual results achieved. Weekday occupancy includes Sunday through Thursday nights and weekend occupancy includes Friday and Saturday nights. WEEKDAY VS. WEEKEND OCCUPANCY Occupancy Monthly Data We
Slide 14: Portfolio Poised for Continued Outperformance
PORTFOLIO POISED FOR CONTINUED OUTPERFORMANCE Balanced exposure to business, leisure and group Select-service hotels franchised with industry-leading brands provide strong value proposition and have proven appeal with broadest group of customers Broad geographic diversification provides exposure to
Slide 15: Positioned for Outperformance Across Cycles
POSITIONED FOR OUTPERFORMANCE ACROSS CYCLES Embedded upside potential Inherent downside protection Outperformance across cycles Limited near-term portfolio impact from new supply High margins drive profitability Continued opportunity for growth in business transient Balance sheet strength and liquid
Slide 16: Benefits of Branded Select-Service Hotels
BENEFITS OF BRANDED SELECT-SERVICE HOTELS Total revenue primarily derived from rooms sold Ability to cross-utilize associates to maximize efficiencies High margins Fewer outlets to manage Less public space to maintain Resilient group business Efficient Operating Model Broad Consumer Appeal Maximize
Slide 17: Broad Consumer Appeal
Independent Rooms-focused hotels with industry-leading brands have broad consumer appeal BROAD CONSUMER APPEAL HILTON GARDEN INN GAINESVILLE COURTYARD SYRACUSE DOWNTOWN AT ARMORY SQUARE HOMEWOOD SUITES RALEIGH-DURHAM AP/RESEARCH TRIANGLE Note: Hotel portfolio statistics as of August 6, 2025. Based o
Slide 18: Modern Accommodations and Amenities
MODERN ACCOMMODATIONS AND AMENITIES WITH BROAD CONSUMER APPEAL
Slide 19: Broad Geographic Diversification
BROAD GEOGRAPHIC DIVERSIFICATION Broad geographic diversification provides exposure to wide variety of demand generators Markets benefit from a mix of business and leisure demand Portfolio benefits from both large corporate negotiated and small and midmarket local negotiated business demand Low depe
Slide 20: Market Strategy: High-Density Suburban
MARKET STRATEGY RESIDENCE INN SEATTLE SOUTH/RENTON HIGH-DENSITY SUBURBAN Properties ideally located in upscale submarkets with attractive cost structures that benefit from a broad mix of business and leisure demand generators and resilient group business. With proximity to an array of guest amenitie
Slide 21: Market Strategy: Urban
MARKET STRATEGY HYATT PLACE GREENVILLE DOWNTOWN URBAN Properties located in business-friendly cities leading the recovery. Beneficiaries of demographic shifts and economic development, these urban locations are home to numerous demand generators, not heavily dependent on inbound international travel
Slide 22: Strong Operating Margins
STRONG OPERATING MARGINS APLE has a proven record of maximizing operating margins across economic cycles. APLE is well positioned to maximize efficiencies and drive profitability: Broad consumer appeal allows for optimization of business mix to drive ADR and RevPAR growth Rooms-focused hotels are in
Slide 23: Limited Near-Term Impact from New Supply
LIMITED NEAR-TERM IMPACT FROM NEW SUPPLY New construction starts have meaningfully decreased since onset of pandemic with anticipated delays in completion 58% of our hotels do not have any exposure to new projects currently under construction within a five-mile radius National supply growth over the
Slide 24: Industry-Leading Asset Management
INDUSTRY-LEADING ASSET MANAGEMENT Analytical, data-driven asset management to maximize property-level performance Scale to negotiate attractive national contracts Strategic revenue management to optimize mix of business and maximize bottom-line performance Strong regional and national third-party op
Slide 25: Proprietary Management Agreement Structure
PROPRIETARY MANAGEMENT AGREEMENT STRUCTURE COURTYARD HOUSTON NASA/CLEAR LAKE Our unique management company contract structure better aligns owner and operator to maximize performance in all market environments. APLE’s Management Company Contract Structure Industry Standard Structure Variable Managem
Slide 26: Balance Sheet Poised for Future Growth
BALANCE SHEET POISED FOR FUTURE GROWTH Positive corporate cash flow early in the recovery preserved strength of balance sheet and equity value Conservative capital structure with staggered maturities lowers capital costs As of June 30, 2025, 61% of outstanding debt fixed or hedged and 209 hotels une
Slide 27: Strong Balance Sheet & Liquidity Position
Debt Composition(1) STRONG BALANCE SHEET & LIQUIDITY POSITION Based on balances and hotels owned as of June 30, 2025, excluding unamortized fair value adjustment of assumed debt and unamortized debt issuance costs. Excludes yearly amortization. Interest rate includes effect of interest rate swaps an
Slide 28: Effective Portfolio Management & Strategic Growth
EFFECTIVE PORTFOLIO MANAGEMENT & STRATEGIC GROWTH AC HOTEL PITTSBURGH DOWNTOWN Opportunistic Dispositions Strategic Growth Reduce exposure to lower growth markets Dispose of hotels where strong operating efficiencies are harder to achieve Optimize capital reinvestment program through dispositions th
Slide 29: Value Creation Through Disciplined Capital Allocation
VALUE CREATION THROUGH DISCIPLINED CAPITAL ALLOCATION AND PORTFOLIO MANAGEMENT Pre-COVID Portfolio Dispositions(1) Acquisitions(2) Comparable Portfolio Number of Hotels(3) 230 36 23 217 Average Hotel Age(4) 14 years 18 years 4 years 17 years Average Guest Room Count 128 107 166 135 RevPAR(5) $105 $6
Slide 30: Hotels Purchased and Sold Since Pandemic
23 hotels purchased for approximately $1.1 billion(1) 15 acquisitions not open or stabilized in 2019 Our acquisition and disposition activity since the start of the pandemic has optimized our portfolio by lowering the average age of our assets, reducing near-term CapEx and increasing exposure to mar
Slide 31: Hotels Acquired Since 2020
23 Hotels Acquired Since 2020 Brand Location Rooms Date Opened Date Acquired Purchase Price Hampton Inn & Suites(1)(2) Cape Canaveral, FL 116 April 2020 April 2020 $46.7 million Home2 Suites(1)(2) Cape Canaveral, FL 108 April 2020 April 2020 Hyatt House(1)(2) Tempe, AZ 105 August 2020 August 2020 $6
Slide 32: Hotels Sold Since 2020
35 Hotels Sold Since 2020 Brand Location Rooms Age at Time of Sale Date Sold Sales Price SpringHill Suites Sanford, FL 105 20 yrs January 2020 $13.0 million SpringHill Suites Boise, ID 230 25 yrs February 2020 $32.0 million Hampton Inn & Suites Tulare, CA 86 12 yrs December 2020 $10.3 million Homewo
Slide 33: Recent Acquisitions: AC Hotel Washington DC
RECENT ACQUISITIONS Acquired March 2024 234-room AC Hotel by Marriott® Washington DC Convention Center Hotel opened in October 2020 Total price: $116.8 million, or approximately $499,000 per key Additional meaningful sources of revenue at the property include retail spaces, rooftop restaurant and ba
Slide 34: Recent Acquisitions: Embassy Suites Madison Downtown
RECENT ACQUISITIONS EMBASSY SUITES MADISON DOWNTOWN Acquired June 2024 following completion of construction 262-room Embassy Suites by Hilton® Madison Downtown Total price: $79.5 million or approximately $303,000 per key Forward commitment with trusted developer Location type: Urban Primary demand g
Slide 35: Recent Acquisitions: Homewood Suites Tampa-Brandon
Acquired June 2025 126-room Homewood Suites by Hilton Tampa-Brandon Total price: $18.8 million or approximately $149,000 per key Adjacent to the Company’s Embassy Suites Tampa Brandon, the hotel was offered for sale by a loan servicer and the purchase price represents a strong double-digit going-in-
Slide 36: Acquisitions Under Contract: Motto Nashville
Hotel under development with anticipated completion of construction in late 2025 260 rooms(2) Anticipated gross purchase price: $98.2 million or approximately $378,000 per key Forward commitment with trusted developer Ideally located in downtown Nashville within walking distance of well-known music
Slide 37: Apple REIT Companies Transaction History
Apple REIT Companies Transaction History 1999 – August 6, 2025 457 TOTAL HOTELS ACQUIRED 236 TOTAL HOTELS SOLD 221 CURRENT HOTEL PORTFOLIO 4 REITS SOLD IN 3 TRANSACTIONS 4 REITS MERGED TO FORM CURRENT APLE 25-YEAR TRACK RECORD OF HOTEL TRANSACTIONS Note: Hotel transactions by the various Apple REIT
Slide 38: Well-Maintained Portfolio
WELL-MAINTAINED PORTFOLIO HOMEWOOD SUITES BIRMINGHAM SOUTH-INVERNESS The Tripadvisor® rating is based on lifetime scores for the Apple Hospitality portfolio of hotels through June 30, 2025. Average Effective Age represents years since hotels were built or last renovated. Average actual age of hotels
Slide 39: U.S. Hotel Forecast
U.S. HOTEL FORECAST U.S. Hotel Forecast COURTYARD PHILADELPHIA GREAT VALLEY/MALVERN Source: STR; © 2025 CoStar Group; Tourism Economics. Published August 2025. 2024 Actual 2025 Forecast 2026 Forecast Occupancy 63.0% 62.5% 62.3% ADR Change (YOY) +1.8% +0.8% +1.0% RevPAR Change (YOY) +1.9% -0.1% +0.8%
Slide 40: Corporate Responsibility Initiatives
FAIRFIELD INN & SUITES TUSTIN ORANGE COUNTY CORPORATE RESPONSIBILITY INITIATIVES We own one of the largest and most geographically diverse portfolios of rooms-focused hotels in the United States and are dedicated to making a positive impact on the many communities our hotels serve. We are mindful of
Slide 41: Environmental Stewardship
ENVIRONMENTAL STEWARDSHIP Apple Hospitality is committed to enhancing and incorporating sustainability opportunities into our investment and asset management strategies, with a focus on minimizing our environmental impact through reductions in energy and water usage and through improvements in waste
Slide 42: Social Responsibility
SOCIAL RESPONSIBILITY Apple Hospitality REIT has always been firmly committed to strengthening communities through charitable giving, by volunteering our time and talents, and by participating in the many philanthropic programs important to our employees and leaders within our industry, including ou
Slide 43: Board of Directors with Effective Experience
Board of Directors with Effective Experience Glade M. Knight – Executive Chairman Founder, Apple Hospitality REIT; Former Chairman/CEO, Cornerstone Realty NYSE: TCR Justin G. Knight – Director Chief Executive Officer, Apple Hospitality REIT Glenn W. Bunting – Director President, GB Corporation Jon A
Slide 44: Appendix
APPENDIX HILTON GARDEN INN HILTON HEAD
Slide 45: Comparable Hotels Quarterly Operating Metrics and Statistical Data
Comparable Hotels Quarterly Operating Metrics and Statistical Data (Unaudited) (in thousands, except statistical data) 2024 2025 Q1 Q2 Q3 Q4 Q1 Q2 Operating income (Actual) $71,615 $93,515 $77,726 $49,903 $50,859 $84,851 Operating margin % (Actual) 21.7% 24.0% 20.5% 15.0% 15.5% 22.1% Comparable Hote
Slide 46: Same Store Hotels Quarterly Operating Metrics and Statistical Data
SAME STORE Hotels Quarterly Operating Metrics and Statistical Data (Unaudited) (in thousands, except statistical data) Represents revenue from the New York Property, which from the second half of 2023 through the first quarter of 2025 was considered lease revenue from a lease to a third-party hotel
Slide 47: Reconciliation of Net Income to EBITDA and Adjusted Hotel EBITDA
RECONCILIATION OF NET INCOME TO EBITDA, EBITDAre, ADJUSTED EBITDAre AND ADJUSTED HOTEL EBITDA THE FOLLOWING TABLE RECONCILES THE COMPANY’S GAAP NET INCOME TO EBITDA, EBITDAre, ADJUSTED EBITDAre AND ADJUSTED HOTEL EBITDA ON A QUARTERLY BASIS FOR 2024 AND 2025 (Unaudited) (in thousands) 2024 2025 Q1 Q
Slide 48: Reconciliation of Net Income to FFO and MFFO
RECONCILIATION OF NET INCOME TO FFO AND MFFO THE FOLLOWING TABLE RECONCILES THE COMPANY’S GAAP NET INCOME TO FFO and MFFO ON A QUARTERLY BASIS FOR 2024 and 2025 (Unaudited) (in thousands, except per share amounts) Note: The Consolidated Statements of Operations and Comprehensive Income and correspon
Slide 49: Definitions
DEFINITIONS HYATT PLACE JACKSONVILLE AIRPORT 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, Inco
Slide 50: Definitions Continued
DEFINITIONS CONTINUED HAMPTON INN & SUITES PHOENIX DOWNTOWN FFO and MFFO The Company calculates and presents FFO in accordance with standards established by Nareit, which defines FFO as net income (loss) (computed in accordance with generally accepted accounting principles (“GAAP”)), excluding gains
Slide 51: Trademark Information
TRADEMARK INFORMATION “AC Hotels by Marriott®,” “Aloft Hotels®,” “Courtyard by Marriott®,” “Fairfield by Marriott®,” “Fairfield Inn by Marriott®,” “Fairfield Inn & Suites by Marriott®,” “Marriott® Hotels,” “Residence Inn by Marriott®,” “SpringHill Suites by Marriott®,” and “TownePlace Suites by Marr
Slide 52: Contact Information
HAMPTON INN & SUITES OMAHA-DOWNTOWN Apple Hospitality REIT, Inc. 814 East Main Street Richmond, VA 23219 (804) 344-8121 info@applehospitalityreit.com www.applehospitalityreit.com
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