Apple Hospitality REIT : Investor Presentation

About this update from Apple Hospitality Reit, Inc.

INVESTOR PRESENTATION M A Y 2 0 2 6 • N Y S E : A P L E F O R WA R D - L O O K I N G S TAT E M E N T S 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 uncertainties. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. Forward-looking statements may include, but are not limited to, statements regarding net asset value and potential trading prices. Words such as "anticipates," "believes," "expects," "estimates," "projects," "plans," "intends," "may," "will," "would," "outlook," "strategy," "targets," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results or outcomes may differ materially from those contemplated by the forward-looking statement. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise any forward-looking statement to reflect changed assumptions or the occurrence of unanticipated events or changes to future operating results, unless required to do so by law. Such factors include, but are not limited to, the ability of Apple Hospitality REIT, Inc. (the "Company," "Apple Hospitality," "Apple" or "APLE") to effectively acquire and dispose of properties and redeploy proceeds; the anticipated timing and frequency of shareholder distributions; the ability of the Company to fund capital obligations; the ability of the Company to successfully integrate pending transactions and implement its operating strategy; changes in general political, economic and competitive conditions and specific market conditions (including the potential effects of tariffs, inflation or a recessionary environment); reduced business and leisure travel due to geopolitical uncertainty, including terrorism and acts of war; travel-related health concerns, including widespread outbreaks of infectious or contagious diseases in the U.S.; inclement weather conditions, including natural disasters such as hurricanes, earthquakes and wildfires; government shutdowns, airline strikes or equipment failures or other disruptions; adverse changes in the real estate and real estate capital markets; financing risks; changes in interest rates; litigation risks; regulatory proceedings or inquiries; changes in laws or regulations or interpretations of current laws and regulations that impact the Company's business, assets or classification as a real estate investment trust; or other risks detailed in filings made by Apple Hospitality with the Securities and Exchange Commission ("SEC"). Although the Company 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 presentation 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 the Company or any other person that the results or conditions described in such statements or the objectives and plans of the Company will be achieved. COURTYARD AND FAIRFIELD INN & SUITES PHOENIX CHANDLER/FASHION CENTER Cover photo: Courtyard Cypress Anaheim/Orange County 2 Apple Hospitality is a publicly traded real estate investment trust that owns one of the largest and most diverse portfolios of upscale, rooms-focused hotels in the United States. Scale Ownership of Upscale, Rooms-Focused Hotels Industry-Leading Brands and Operators Broad Geographic Diversification Consistent Reinvestment (1) Strong, Flexible Balance Sheet (2) 216 HOTELS 16 BRANDS 37 STATES 5 yrs AVERAGE EFFECTIVE AGE 37% NET TOTAL DEBT TO TOTAL CAPITALIZATION 29,459 GUEST ROOMS 63% OUTSTANDING DEBT EFFECTIVELY FIXED 99% ROOMS- FOCUSED 15 MANAGEMENT COMPANIES 83 MARKETS 4.3 AVERAGE TRIPADVISOR ® RATING 207 HOTELS UNENCUMBERED Note: Hotel portfolio statistics as of May 4, 2026. Market categorization based on STR designation. Average Effective Age represents years since hotels were built or last renovated. Average actual age of hotels is 18 years. The Tripadvisor® rating is based on lifetime scores for the Apple Hospitality portfolio of hotels through March 31, 2026. Net Total Debt to Total Capitalization calculation based on (as of March 31, 2026) total debt outstanding, net of cash and cash equivalents ("net total debt outstanding"), divided by net total debt outstanding plus equity market capitalization based on the Company's closing share price of $11.51 and outstanding common shares. Based on hotels owned as of March 31, 2026. 3 C O M PA N Y P R O F I L E A N D P R O V E N I N V E S T M E N T S T R AT E G Y $1.4 Billion I N R E V E N U E Full Year 2025 $1.55 2 0 2 5 M F F O P E R S H A R E (1) $0.74 Net Income Per Share $240.4 Million D I S T R I B U T I O N S P A I D In 2025 +12.7 ppts TSR Outperformance vs. Dow Jones U.S. Real Estate Hotels Index for the 2021-2025 Period 7.1% A N N U A L Y I E L D (2) $0.96 Per Share +20.5 ppts TSR Outperformance vs. Nareit Lodging/Resorts Index for the 2021-2025 Period EXCHANGE: TICKER NYSE: APLE DIVIDEND YIELD at 4/30/2026 7.1% annual yield, annual rate of $0.96 per share, paid monthly AVERAGE TRADING VOLUME TTM 4/30/2026 3.0 Million shares per day EQUITY MARKET CAP at 3/31/2026 $2.7 Billion NET DEBT at 3/31/2026 $1.6 Billion, 37% net total debt outstanding to total capitalization TOTAL ENTERPRISE VALUE at 3/31/2026 $4.3 Billion COMPARABLE HOTELS REVENUE (1) TTM 3/31/2026 $1.4 Billion COMPARABLE HOTELS ADJUSTED HOTEL EBITDA MARGIN (1) TTM 3/31/2026 33.9% 2026 ESTIMATED CAPEX $80 Million to $90 Million EXECUTIVE TARGET COMPENSATION STRUCTURE 76% executive target compensation incentive based See following pages for reconciliation to actual revenue and net income. Annualized distribution of $0.96 per common share represents an annual yield of approximately 7.1%, based on April 30, 2026, closing price of $13.47. 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 March 31, 2026) total debt outstanding, net of cash and cash equivalents ("net total debt outstanding"), divided by net total debt outstanding plus equity market capitalization based on the Company's closing share price of $11.51 and outstanding common shares. 4 C O M PA N Y O V E R V I E W M A N A G E M E N T T E A M W I T H D E E P I N D U S T R Y E X P E R I E N C E O V E R M U LT I P L E H O T E L C Y C L E S Average executive tenure with the Apple REIT Companies is 19 years Established and operated 8 public hospitality REITs Raised and invested approximately $7.4 billion of equity in hotel assets Purchased 458 hotels Purchased as many as 74 hotels in a single year through individual hotel and small portfolio transactions Managed $1.3 billion in CapEx and renovation spending Sold 4 REITs in 3 transactions totaling $2.7 billion Merged 3 REITs and listed Company on NYSE Completed $1.3 billion Apple REIT Ten merger Representation on over 30 brand and industry advisory boards and councils MOTTO NASHVILLE DOWNTOWN MISSION We are a leading real estate investment company committed to increasing shareholder value through the distribution of attractive dividends and long-term capital appreciation. 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 through innovation and perseverance. Integrity - We are trustworthy and accountable. Teamwork - We support and empower one another, embracing diversity of opinion and background. 5 P R O V E N I N V E S T M E N T S T R AT E G Y Concentrate on Upscale, rooms-focused hotels Align with the best brands in the rooms-focused category 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 Invested in Hilton ® , Marriott ® and Hyatt ® branded hotels with broad consumer appeal which benefit from strong reservation systems and loyalty programs Hire industry-leading operators and maximize performance through benchmarking and asset management Strong regional and national operators with unique management structure align owner and operator to maximize performance in all market environments Analytical, data-driven asset management benchmarks and shares best practices to maximize property-level results Strategic revenue management optimizes mix of business and maximizes bottom-line performance Pursue broad geographic diversification Broad geographic diversification reduces portfolio volatility and provides exposure to a wide variety of demand generators Enhance portfolio through accretive acquisitions, opportunistic dispositions and strategic reinvestment Well-maintained portfolio with average effective age of 5 years ensures competitiveness Strategic acquisitions and dispositions optimize portfolio for longterm growth Prudent capital allocation preserves balance sheet capacity for investments at optimal point in cycle Maintain a strong, flexible balance sheet Strong balance sheet provides security through cycles Positioned to pursue accretive opportunities Conservative capital structure with staggered maturities lowers 6 capital costs and preserves equity value COURTYARD AND RESIDENCE INN RICHMOND DOWNTOWN Q1 2026 KEY TAKEAWAYS OPERATING PERFORMANCE EXCEEDED EXPECTATIONS Comparable Hotels RevPAR +2.2% Same Store Hotels RevPAR +2.8% Same Store Hotels Adjusted Hotel EBITDA +4.2% with 30 bps margin expansion Preliminary Comparable Hotels RevPAR growth of more than 4% for the month of April 2026 CONTINUED CAPITAL ALLOCATION DISCIPLINE Sold Hampton Inn & Suites Rochester-North for approximately $9 million in April 2026 Reinvested approximately $27.5 million in Capital Improvements MONTHLY DIVIDEND BOOSTS TOTAL SHAREHOLDER RETURNS $57 million in first quarter distributions, $0.24 per common share Monthly dividend of $0.08 per common share Annualized yield of 7.1% based on April 30th closing price of $13.47 MAINTAINED STRONG, FLEXIBLE BALANCE SHEET Approximately 37% net debt to total capitalization at quarter end Approximately $559 million available on revolving credit facility 207 unencumbered assets 3.4x net debt to EBITDA ATTRACTIVE SUPPLY OUTLOOK 57% of hotels have no new supply under construction within a five-mile radius Note: Unless otherwise stated, all changes in performance metrics refer to year-over-year changes for the comparable period. 7 Reconciliation of net income to non-GAAP financial measures included in following pages. MOTTO NASHVILLE DOWNTOWN Y E A R - O V E R - Y E A R P E R F O R M A N C E First Quarter 2026 Performance at a Glance ($ in thousands except statistical data and per share amounts) Three Months Ended March 31, % CHANGE 2026 2025 to 2025 Comparable Hotels ADR $157.35 $157.26 0.1% Comparable Hotels Occupancy 72.8% 71.3% 2.1% Comparable Hotels RevPAR $114.61 $112.14 2.2% Comparable Hotels Total Revenue $336,943 $322,976 4.3% Comparable Hotels Adjusted Hotel EBITDA $108,447 $104,680 3.6% Comparable Hotels Adjusted Hotel EBITDA Margin % 32.2% 32.4% (20 bps) Modified Funds From Operations (MFFO) $80,283 $78,807 1.9% MFFO per share $0.34 $0.33 3.0% COURTYARD AND RESIDENCE INN RICHMOND DOWNTOWN Note: Comparable Hotels is defined as the 216 hotels owned and held for use by the Company as of March 31, 2026. 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 and assets held for sale, 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. 8 E F F I C I E N T O P E R AT I O N S Rooms-focused operating model produces strong margins Full Year 2025 Hotel EBITDA Margin and RevPAR Comparison 35% 34% 33% 29% 28% 28% 27% 26% 26% 26% 24% $143 $118 $122 $229 $207 $132 $143 $185 $182 $225 $213 CLDT APLE (1) INN HST DRH AHT RLJ PK XHR SHO PEB RevPAR Upscale/Rooms-Focused Upper Upscale/Full-Service Upscale & Upper Upscale Combined COURTYARD CYPRESS ANAHEIM/ORANGE COUNTY Source: Company filings. Assumptions may vary by company. (1) See explanation and reconciliation of Adjusted Hotel EBITDA to net income included in subsequent pages. 9 N E T D E B T T O E B I T D A C O M PA R I S O N Low leverage has always been a key component of our strategy, providing stability and optionality across economic cycles Net Debt to TTM EBITDA Ratio at December 31, 2025 12.4x 7.8x 5.0x 5.3x 5.7x 5.9x 3.4x 3.4x 3.4x 3.5x 2.5x HST APLE (1) CLDT SHO DRH XHR RLJ PEB PK INN AHT (2) Upscale/Rooms-Focused Upper Upscale/Full-Service Upscale & Upper Upscale Combined RESIDENCE INN PHOENIX NORTH/HAPPY VALLEY Source: Company filings. Assumptions may vary by company. See explanation and reconciliation of Adjusted EBITDA to net income included in subsequent pages. Includes debt associated with hotels in receivership. 10 Occ ADR RevPAR $160 $162 $159 $161 $163 $159 $149 $149 $147 $136 $140 $132 $125 $128 $130 $131 $118 $124 $122 $122 $119 $104 $95 $88 $93 64% 74% 77% 78% 78% 81% 78% 76% 75% 79% 70% 63% 64% 75% 80% 100% 90% 80% 70% 60% 50% $164 $169 $166 $167 $165 40% 30% 20% 10% 0% Jan 2025 Feb 2025 Mar 2025 Apr 2025 May 2025 Jun 2025 Jul 2025 Aug 2025 Sep 2025 Oct 2025 Nov 2025 Dec 2025 Jan 2026 Feb 2026 Mar 2026 - +1% -2% -4% -1% - +1% -3% -3% -2% -3% - -2% +1% +6% % Change in RevPAR Compared to Same Period of Prior Year Note: Comparable Hotels is defined as the 216 hotels owned and held for use by the Company as of March 31, 2026. 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 and assets held for sale, 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. 11 C O M PA R A B L E H O T E L S O P E R AT I N G T R E N D S Continued Strength in Comparable Hotels Occupancy 100% 78% 78% 81% 78% 79% 80% 83% 82% 74% 77% 76% 75% 75% 78% 70% 72% 64% 63% 64% Week ended 90% 80% 70% Occupancy 60% 50% 40% 30% 20% 10% 0% Jan 2025 Feb 2025 Mar 2025 Apr 2025 May 2025 Jun 2025 Jul 2025 Aug 2025 Sep 2025 Oct 2025 Nov 2025 Dec 2025 Jan 2026 Feb 2026 Mar 2026 4/4/26 4/11/26 4/18/26 4/25/26 -1% -1% -2% -3% -1% -1% +1% -2% -2% -2% -3% - - +2% +4% -5% -3% +12% +6% % Change in Occupancy Compared to Same Period of Prior Year Note: Comparable Hotels is defined as the 216 hotels owned and held for use by the Company as of March 31, 2026. 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 and assets held for sale, 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. Source: Weekly data provided by STR for hotels owned by the Company and may differ from actual results achieved. 12 C O M PA R A B L E H O T E L S O C C U PA N C Y T R E N D S Continued Strength in Absolute Weekday and Weekend Occupancy 100% 90% Occupancy 80% 70% 60% 50% 40% 30% 20% 10% 0% 85% Weekday Weekend 86% 88% 88% 87% 82% 82% 84% 83% 83% 80% 80% 80% 76% 79% 80% 79% 76% 76% 76% 77% 72% 74% 75% 74% 73% 75% 73% 73% 69% 71% 71% 67% 64% 63% 63% 64% 60% Jan 2025 Feb 2025 Mar 2025 Apr 2025 May 2025 Jun 2025 Jul 2025 Aug 2025 Sep 2025 Oct 2025 Nov 2025 Dec 2025 Jan 2026 Feb 2026 Mar 2026 4/4/26 4/11/26 4/18/26 4/25/26 Weekly Data Monthly Data 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. 13 W E E K D AY V S . W E E K E N D O C C U PA N C Y PORTFOLIO POISED FOR CONTINUED OUTPERFORMANCE Select-service hotels franchised with industry-leading brands provide strong value proposition and have proven appeal with broadest group of business and leisure customers Resilient demand with favorable year-over-year, government travel comparisons Broad geographic diversification provides exposure to wide variety of markets and demand generators, with meaningful exposure to FIFA World Cup 2026 domestic markets Limited near-term portfolio impact from new supply Continue to see strength from small group demand and are positioned in many markets to benefit from compression from large group business Efficient operating model combined with prudent expense management yields higher margins, increasing flow-through of top-line improvements Well-maintained, institutional-quality portfolio with substantial long-term value Average annual CapEx spend, as a percent of total revenue, significantly lower than full-service portfolios, allowing for substantial free cash flow from operations to fund shareholder distributions and strategic investments Acquisition and disposition activity has lowered the average age of assets, reduced near-term CapEx and increased exposure to markets anticipated to outperform over the next cycle while maintaining a strong and flexible balance sheet Balance sheet strength and liquidity position the Company to continue to pursue accretive acquisitions and optimize portfolio 14 HILTON GARDEN INN HILTON HEAD High margins combined with low CapEx needs results in strong free cash flow Broad geographic diversification enhances portfolio stability Strong value proposition for business and leisure guests drives resilient demand Low debt means less volatility Low supply growth favorably shifts risk and growth profiles STABILITY THROUGH CYCLES LEADS TO OUTPERFORMANCE 15 P O S I T I O N E D F O R O U T P E R F O R M A N C E A C R O S S C Y C L E S hotels in portfolio 39 34 hotels in portfolio 33 30 27 hotels in portfolio hotels in portfolio hotels in portfolio 10 hotels in portfolio 10 hotels in portfolio 8 hotels in portfolio 8 4 hotels in portfolio hotels in portfolio 3 hotels in portfolio 4 hotels in portfolio Note: Number of hotels the Company owns by brand as of May 4, 2026. 2 hotels in portfolio 1 1 hotel in portfolio hotel in portfolio 16 S C A L E O W N E R S H I P O F R O O M S - F O C U S E D H O T E L S W I T H B R O A D C O N S U M E R A P P E A L B E N E F I T S O F B R A N D E D S E L E C T - S E R V I C E H O T E L S Efficient Operating Model Broad Consumer Appeal Maximize Shareholder Value COURTYARD VIRGINIA BEACH OCEANFRONT/SOUTH Total revenue primarily derived from rooms sold High-quality hotels with strong value proposition for guests Ability to optimize mix of business to drive RevPAR and EBITDA HOMEWOOD SUITES HUNTSVILLE-VILLAGE OF PROVIDENCE HOME2 SUITES ANCHORAGE/MIDTOWN Ability to cross-utilize associates to maximize efficiencies High margins Fewer outlets to manage Less public space to maintain Resilient group business Product attractive to business and leisure travelers Award-winning service, innovative design and modern amenities Strong reservation systems and loyalty programs Global distribution creates strong consumer awareness Lower downside risk with meaningful upside High margins drive overall profitability Lower long-term capital needs Institutional brands foster strong resale market, financing flexibility and investor confidence 17 B R O A D G E O G R A P H I C D I V E R S I F I C AT I O N 3% 3% 5% 3% 5% 4% 11% 4% Diversification across 83 markets helps drive strong, consistent performance 3% 4% ✓ 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 dependence on inbound international travel 3% ✓ Unparalleled exposure to business-friendly markets which continue to benefit from population shifts 3% Note: Hotel locations as of May 4, 2026. Highlighted markets represent largest markets in Apple Hospitality's portfolio based on Comparable Hotels Adjusted Hotel EBITDA contribution for the three months ended March 31, 2026. Market categorizations based on STR designations. 18 M A R K E T S T R AT E G Y Diversification across high-density location types helps drive strong, consistent performance Adjusted Hotel EBITDA contribution by location type Urban 34% Suburban 43% Small Metro 1% Airport 12% Interstate 2% Resort 8% 19 Note: Comparable Hotels Adjusted Hotel EBITDA contribution by location type based on the three months ended March 31, 2026. Market and location categorizations based on STR designations. 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 amenities and conveniences, these locations help drive strong, consistent performance. COURTYARD SEATTLE KIRKLAND HOME2 SUITES ANCHORAGE/MIDTOWN RESIDENCE INN LOS ANGELES BURBANK/DOWNTOWN URBAN Properties located in business-friendly cities. Beneficiaries of demographic shifts and economic development, these urban locations are home to numerous demand generators, not heavily dependent on inbound international travel and poised for continued growth. ALOFT PORTLAND DOWNTOWN WATERFRONT ME EMBASSY SUITES MADISON DOWNTOWN HYATT PLACE GREENVILLE DOWNTOWN S T R O N G O P E R AT I N G M A R G I N S 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 inherently efficient Higher margins amplify bottom-line impact of top-line growth Unparalleled access to performance data allows benchmarking to identify and share best practices Flexible labor and in place labor management systems (with centralized reporting) provide opportunity to maximize productivity Investments in hotel associates and training lower turnover and reduce reliance on contract labor over time 20 HILTON GARDEN INN DENVER DOWNTOWN A

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