Apple Hospitality REIT Reports Results of Operations for Fourth Quarter and Full Year 2018

Apple Hospitality REIT, Inc. (NYSE: APLE) (the Company or Apple Hospitality) today announced results of operations for the fourth quarter and full year ended December 31, 2018.

 

Selected Statistical and Financial Data

As of and For the Three Months and Years Ended December 31

(Unaudited) (in thousands, except statistical and per share amounts)(1)

                             
Three Months Ended Years Ended
December 31, December 31,
2018 2017 % Change 2018 2017 % Change
 
Net income (loss) $ 34,152 $ (2,303) n/a $ 206,086 $ 182,492 12.9%
Net income (loss) per share $ 0.15 $ (0.01) n/a $ 0.90 $ 0.82 9.8%
 
Adjusted EBITDAre $ 94,831 $ 93,073 1.9% $ 448,512 $ 438,538 2.3%
Comparable Hotels Adjusted Hotel EBITDA $ 102,273 $ 103,368 (1.1%) $ 474,431 $ 476,889 (0.5%)
Comparable Hotels Adjusted Hotel EBITDA Margin % 34.6% 35.1% (50 bps) 37.2% 37.9% (70 bps)
Modified funds from operations (MFFO) $ 81,502 $ 80,956 0.7% $ 395,785 $ 389,430 1.6%
MFFO per share $ 0.36 $ 0.36 $ 1.72 $ 1.74 (1.1%)
 
Average Daily Rate (ADR) (Actual) $ 131.93 $ 130.30 1.3% $ 136.04 $ 134.61 1.1%
Occupancy (Actual) 72.5% 73.5% (1.4%) 76.9% 77.4% (0.6%)
Revenue Per Available Room (RevPAR) (Actual) $ 95.63 $ 95.76 (0.1%) $ 104.66 $ 104.13 0.5%
 
Comparable Hotels ADR $ 131.88 $ 130.75 0.9% $ 136.11 $ 135.22 0.7%
Comparable Hotels Occupancy 72.5% 73.7% (1.6%) 77.0% 77.7% (0.9%)
Comparable Hotels RevPAR $ 95.59 $ 96.40 (0.8%) $ 104.80 $ 105.00 (0.2%)
 
Distributions paid $ 68,627 $ 67,201 2.1% $ 275,892 $ 267,917 3.0%
Distributions paid per share $ 0.30 $ 0.30 $ 1.20 $ 1.20
 
Total debt outstanding $ 1,417,573
Total debt to total capitalization (2) 30.7%
(1) Explanations of and reconciliations to net income (loss) determined in accordance with generally accepted accounting principles (GAAP) of non-GAAP financial measures, Adjusted EBITDAre, Comparable Hotels Adjusted Hotel EBITDA and MFFO, are included below.
(2) Total debt outstanding divided by total debt outstanding plus equity market capitalization based on the Companys closing share price of $14.26 on December 31, 2018.
 

Comparable Hotels is defined as the 241 hotels owned by the Company as of December 31, 2018. 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.

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Justin Knight, President and Chief Executive Officer of Apple Hospitality REIT, commented, Through strategic revenue management and effective cost control measures, we achieved stable operating results across our geographically diversified portfolio of hotels during the fourth quarter and full year of 2018. RevPAR growth was impacted by competitive pressures in many markets and hurricane-related outperformance in 2017. However, despite the current moderate growth and increasing cost environment, we are pleased to report Comparable Hotels Adjusted Hotel EBITDA Margin of 37.2 percent for the year. Highlighting our commitment to pursuing opportunities that will enhance shareholder value, we repurchased more than 6.5 million shares of our stock since the end of the third quarter of 2018. We are confident we are uniquely positioned to maximize operating results and take advantage of additional opportunities in the marketplace in 2019.

Portfolio Activity

Acquisitions and Contracts for Potential Acquisitions

During 2018, Apple Hospitality acquired five hotels with 732 rooms for a combined total purchase price of approximately $152 million, including the existing 127-room Hyatt Place in Jacksonville, Florida, which was acquired during the fourth quarter for approximately $15 million.

The Company currently has contracts for the potential acquisition of six additional hotels with 766 rooms for a combined total purchase price of approximately $162 million, including a contract that was entered into in January 2019 for the potential purchase of an existing 160-room Hampton Inn & Suites by Hilton in St. Paul, Minnesota, for approximately $32 million. As previously announced, the other five hotels under contract are currently under development. If all conditions to closing are met, the Company anticipates acquiring two of the hotels in March of 2019 and four of the hotels in 2020. There are many conditions to closing under each of the contracts that have not yet been satisfied, and there can be no assurance that closings on the hotels will occur.

Dispositions and Contracts for Potential Dispositions

Apple Hospitality sold three hotels during 2018, for a total combined gross sales price of approximately $16 million, including the 72-room Residence Inn by Marriott in Springdale, Arkansas, which was sold during the fourth quarter for approximately $6 million.

In February 2019, the Company terminated its previously announced contract for the potential sale of 16 hotels and entered into contracts with the same unrelated party for the sale of nine properties for a combined gross sales price of $95 million. There are many conditions to closing under each of the contracts that have not yet been satisfied, and there can be no assurance that closings on the hotels will occur under the outstanding sales contracts. If closings occur, the sales are expected to be completed during the first half of 2019. The purchaser under these contracts has made a $7 million nonrefundable deposit to secure the contracts.

Capital Improvements

Apple Hospitality consistently reinvests in its hotels to maintain and enhance each propertys relevance and competitive position within its respective market. During the year ended December 31, 2018, the Company invested approximately $71 million in capital expenditures. The Company plans to continue to reinvest in its hotels and anticipates investing approximately $80 million to $90 million in capital improvements during 2019, which includes various scheduled renovation projects for approximately 30 to 35 properties.

Balance Sheet

As of December 31, 2018, Apple Hospitality had approximately $1.4 billion of total outstanding indebtedness with a current combined weighted-average interest rate of approximately 3.7 percent for 2019. Excluding unamortized debt issuance costs and fair value adjustments, the Companys total outstanding indebtedness is comprised of approximately $489 million in property-level debt secured by 31 hotels and $929 million outstanding on its unsecured credit facilities. Apple Hospitalitys undrawn capacity on its unsecured credit facilities at December 31, 2018, was approximately $231 million. The Companys total debt to total capitalization at December 31, 2018, was approximately 31 percent, which provides Apple Hospitality with financial flexibility to fund capital requirements and pursue opportunities in the marketplace. The Companys weighted-average debt maturities are 5.2 years, and the weighted-average maturity of its effectively fixed-rate debt is 4.4 years at a weighted-average interest rate of 4.0 percent.

Share Repurchase Program

During 2018, the Company purchased, under its Share Repurchase Program, approximately 6.6 million of its common shares at a weighted-average market purchase price of approximately $15.87 per common share, for an aggregate purchase price of approximately $104 million. Substantially all of the purchases were made during the fourth quarter of 2018, with approximately 6.3 million shares purchased at a weighted-average market purchase price of approximately $15.83, for an aggregate purchase price of approximately $100 million. During the month of January 2019, the Company purchased, under its Share Repurchase Program, approximately 0.2 million of its common shares, at a weighted-average market purchase price of approximately $14.81 per common share, for an aggregate purchase price of approximately $4 million. The timing of share repurchases and the number of common shares to be repurchased under the Share Repurchase Program will depend upon prevailing market conditions, regulatory requirements and other factors. The Company is not obligated to repurchase any specific number of shares and may suspend repurchases at any time at its discretion. Repurchases under the Share Repurchase Program have been funded, and the Company intends to fund future repurchases, with availability under its credit facilities.

Shareholder Distributions

Apple Hospitality paid distributions of $0.30 per common share during the three-month period ended December 31, 2018. Distributions paid by the Company totaled $1.20 per common share for the year ended December 31, 2018. Based on the Companys common share closing price of $16.76 on February 21, 2019, the annualized distribution rate of $1.20 per common share represents an annual yield of approximately 7.2 percent. The Companys Board of Directors, in consultation with management, will continue to regularly monitor the Companys distribution rate relative to the performance of its hotels, capital improvement needs, varying economic cycles, acquisitions and dispositions. At its discretion, the Companys Board of Directors may make adjustments as determined to be prudent in relation to other cash requirements of the Company.

2019 Outlook

Apple Hospitality is providing its operational and financial outlook for 2019. This outlook, which is based on managements current view of both operating and economic fundamentals of the Companys 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 Change and Comparable Hotels Adjusted Hotel EBITDA Margin % guidance include properties acquired, as if the hotels were owned as of January 1, 2018, and exclude completed dispositions since January 1, 2018. For the full year 2019, the Company anticipates:

         
2019 Guidance(1)(2)
Low-End High-End
 
Net Income $168 Million $192 Million
 
Comparable Hotels RevPAR Change (1.0%) 1.0%
 
Comparable Hotels Adjusted Hotel EBITDA Margin % 35.4% 36.4%
 
Adjusted EBITDAre(3) $423 Million $443 Million
 
Adjusted EBITDAre, assuming disposition of hotels under contract for sale(3) $416 Million $436 Million
(1)     Explanations of and reconciliations to net income guidance of Adjusted EBITDAre guidance are included below.
(2) The 2019 Guidance does not include the effect of the Companys adoption of Accounting Standards Codification Topic 842, Leases on January 1, 2019. Under the new standard, certain leases that were previously accounted for as operating leases will be accounted for as finance leases under Topic 842. For these finance leases, the Company will recognize depreciation expense and interest and other expense, net in the Companys consolidated statements of operations, instead of ground lease expense. While the total expense recognized over the life of a lease will be unchanged, the timing of expense recognition for finance leases will result in higher expense recognition during the earlier years of the lease and lower expense during the later years of the lease.
(3) In February 2019, the Company entered into contracts for the disposition of nine hotels for a combined gross sales price of approximately $95 million. The contracts are subject to many conditions before closings could occur, therefore, there can be no assurance that the hotels will be sold. For purposes of the Companys 2019 Outlook, the Company has presented Adjusted EBITDAre guidance (i) without giving effect to closings on the sales of the hotels and (ii) assuming closings on the sales of the hotels at the end of the first quarter of 2019. The dispositions would not affect the Company’s outlook for Comparable Hotels RevPAR Change or Comparable Hotels Adjusted Hotel EBITDA Margin %.
 

Fourth Quarter and Full Year 2018 Earnings Conference Call

The Company will host a quarterly conference call for investors and interested parties on Tuesday, February 26, 2019, 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 February 26, 2019, through 11:59 p.m. Eastern Time on March 12, 2019. To access the replay, the domestic dial-in number is (844) 512-2921, the international dial-in number is (412) 317-6671, and the passcode is 13685854. 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 and most diverse portfolios of upscale, rooms-focused hotels in the United States. Apple Hospitalitys portfolio consists of 241 hotels with more than 30,800 guest rooms located in 88 markets throughout 34 states. Franchised with industry-leading brands, the Companys portfolio comprises 114 Marriott-branded hotels, 126 Hilton-branded hotels and one Hyatt-branded hotel. For more information, please visit www.applehospitalityreit.com.

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); Earnings Before Interest, Income Taxes, Depreciation and Amortization for Real Estate (EBITDAre); Adjusted EBITDAre (Adjusted EBITDAre); and Adjusted Hotel EBITDA (Adjusted Hotel EBITDA). These non-GAAP financial measures should be considered along with, but not as alternatives to, net income (loss), cash flow from operations or any other operating GAAP measure. FFO, MFFO, EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted Hotel EBITDA are not necessarily indicative of funds available to fund the Companys cash needs, including its ability to make cash distributions. Although FFO, MFFO, EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted Hotel EBITDA, as calculated by the Company, may not be comparable to FFO, MFFO, EBITDA, EBITDAre, Adjusted EBITDAre 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 Companys results between periods and with other REITs. Reconciliations of these non-GAAP financial measures to net income (loss) are provided in the following pages.

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; litigation risks; regulatory proceedings or inquiries; and changes in laws or regulations or interpretations of current laws and regulations that impact Apple Hospitalitys 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 Hospitalitys 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 Hospitalitys financial statements and the notes thereto, as well as the risk factors described in Apple Hospitalitys filings with the Securities and Exchange Commission, including, but not limited to, in the section titled Risk Factors in the Companys Annual Report on Form 10-K for the year ended December 31, 2018. 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.

For additional information or to receive press releases by email, visit www.applehospitalityreit.com.

 

Apple Hospitality REIT, Inc.

Consolidated Balance Sheets

(in thousands, except share data)

 
      As of December 31,
2018       2017  
 
Assets

Investment in real estate, net of accumulated depreciation of $909,893 and $731,284, respectively

$ 4,816,410 $ 4,793,159
Restricted cash-furniture, fixtures and other escrows 33,632 29,791
Due from third party managers, net 29,091 31,457
Other assets, net   49,539     47,931  
Total Assets $ 4,928,672   $ 4,902,338  
 
Liabilities
Debt, net $ 1,412,242 $ 1,222,196
Accounts payable and other liabilities   107,420     109,057  
Total Liabilities 1,519,662 1,331,253
 
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 223,997,348 and 229,961,548 shares, respectively

4,495,073 4,588,188
Accumulated other comprehensive income 10,006 9,778
Distributions greater than net income   (1,096,069 )   (1,026,881 )
Total Shareholders’ Equity   3,409,010     3,571,085  
 
Total Liabilities and Shareholders’ Equity $ 4,928,672   $ 4,902,338  

Note:

The Consolidated Balance Sheets and corresponding footnotes can be found in the Companys Annual Report on Form 10-K for the year ended December 31, 2018.

 
             
Apple Hospitality REIT, Inc.
Consolidated Statements of Operations and Comprehensive Income
(in thousands, except per share data)
 
Three Months Ended Years Ended
December 31, (Unaudited) December 31,
2018   2017 2018 2017
Revenues:
Room $ 270,679 $ 266,013 $ 1,172,331 $ 1,143,987
Food and beverage 15,743 16,119 62,600 66,030
Other   8,833     6,935     35,624     28,605  
Total revenue 295,255 289,067 1,270,555 1,238,622
 
Expenses:
Hotel operating expense:
Operating 76,849 75,282 315,363 310,756
Hotel administrative 24,637 24,850 102,019 99,745
Sales and marketing 25,069 25,010 105,834 100,877
Utilities 9,781 9,927 42,474 41,909
Repair and maintenance 12,680 12,069 51,813 48,463
Franchise fees 12,654 12,319 54,494 52,930
Management fees   10,156     9,650     43,937     42,722  
Total hotel operating expense 171,826 169,107 715,934 697,402
Property taxes, insurance and other 19,500 17,045 74,640 69,391
Ground lease 2,784 2,827 11,364 11,313
General and administrative 7,326 8,086 24,294 26,341
Transaction and litigation costs (reimbursements) (2,586 )
Loss on impairment of depreciable real estate assets 38,000 3,135 45,875
Depreciation   46,730     44,729     183,482     176,499  
Total expense 248,166 279,794 1,012,849 1,024,235
 
Gain on sale of real estate   152     312     152     16,295  
 
Operating income 47,241 9,585 257,858 230,682
 
Interest and other expense, net   (12,916 )   (11,753 )   (51,185 )   (47,343 )
 
Income (loss) before income taxes 34,325 (2,168 ) 206,673 183,339
 
Income tax expense   (173 )   (135 )   (587 )   (847 )
 
Net income (loss) $ 34,152   $ (2,303 ) $ 206,086   $ 182,492  
 
Other comprehensive income (loss):
Interest rate derivatives   (9,461 )   4,560     228     5,189  
 
Comprehensive income $ 24,691   $ 2,257   $ 206,314   $ 187,681  
 
Basic and diluted net income (loss) per common share $ 0.15   $ (0.01 ) $ 0.90   $ 0.82  
 
Weighted average common shares outstanding – basic and diluted 227,455 224,935 229,659 223,526

Note:

The Consolidated Statements of Operations and Comprehensive Income and corresponding footnotes can be found in the Companys Annual Report on Form 10-K for the year ended December 31, 2018.

 
                           
Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics and Statistical Data
(Unaudited)
(in thousands except statistical data)
   
Three Months Ended Years Ended
December 31, December 31,
2018 2017 % Change 2018 2017 % Change
 
Total revenue $ 295,503 $ 294,788 0.2% $ 1,274,139 $ 1,259,897 1.1%
 
Total operating expenses   193,230   191,420 0.9%   799,708   783,008 2.1%
 
Adjusted Hotel EBITDA $ 102,273 $ 103,368 (1.1%) $ 474,431 $ 476,889 (0.5%)
Adjusted Hotel EBITDA Margin % 34.6% 35.1% (50 bps) 37.2% 37.9% (70 bps)
 
 
ADR (Comparable Hotels) $ 131.88 $ 130.75 0.9% $ 136.11 $ 135.22 0.7%
Occupancy (Comparable Hotels) 72.5% 73.7% (1.6%) 77.0% 77.7% (0.9%)
RevPAR (Comparable Hotels) $ 95.59 $ 96.40 (0.8%) $ 104.80 $ 105.00 (0.2%)
 
ADR (Actual) $ 131.93 $ 130.30 1.3% $ 136.04 $ 134.61 1.1%
Occupancy (Actual) 72.5% 73.5% (1.4%) 76.9% 77.4% (0.6%)
RevPAR (Actual) $ 95.63 $ 95.76 (0.1%) $ 104.66 $ 104.13 0.5%
 

Reconciliation to Actual Results

 
Total Revenue (Actual) $ 295,255 $ 289,067 $ 1,270,555 $ 1,238,622
Revenue from acquisitions prior to ownership 674 7,130 7,782 41,357
Revenue from dispositions (360) (1,358) (3,934) (19,886)
Lease revenue intangible amortization   (66)   (51)   (264)   (196)
Comparable Hotels Total Revenue $ 295,503 $ 294,788 $ 1,274,139 $ 1,259,897
 
Adjusted Hotel EBITDA (AHEBITDA) (Actual) $ 102,157 $ 101,159 $ 472,806 $ 464,879
AHEBITDA from acquisitions prior to ownership 179 2,491 2,638 17,160
AHEBITDA from dispositions   (63)   (282)   (1,013)   (5,150)
Comparable Hotels AHEBITDA $ 102,273 $ 103,368 $ 474,431 $ 476,889

Note:

Comparable Hotels is defined as the 241 hotels owned by the Company as of December 31, 2018. 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 (loss) to non-GAAP financial measures is included in the following pages.

 
 
Apple Hospitality REIT, Inc.
Comparable Hotels Quarterly Operating Metrics and Statistical Data
(Unaudited)
(in thousands except statistical data)
                                       
Three Months Ended
  3/31/2017   6/30/2017   9/30/2017   12/31/2017   3/31/2018   6/30/2018   9/30/2018   12/31/2018
 
Total revenue $ 294,317 $ 337,027 $ 333,765 $ 294,788 $ 300,617 $ 345,472 $ 332,547 $ 295,503
 
Total operating expenses   187,284   201,615   202,689   191,420   192,493   207,497   206,488   193,230
 
Adjusted Hotel EBITDA $ 107,033 $ 135,412 $ 131,076 $ 103,368 $ 108,124 $ 137,975 $ 126,059 $ 102,273
Adjusted Hotel EBITDA Margin % 36.4% 40.2% 39.3% 35.1% 36.0% 39.9% 37.9% 34.6%
 
 
ADR (Comparable Hotels) $ 133.30 $ 138.10 $ 138.17 $ 130.75 $ 134.62 $ 139.73 $ 137.66 $ 131.88
Occupancy (Comparable Hotels) 74.7% 81.7% 80.5% 73.7% 74.7% 81.8% 79.0% 72.5%
RevPAR (Comparable Hotels) $ 99.63 $ 112.81 $ 111.17 $ 96.40 $ 100.57 $ 114.33 $ 108.72 $ 95.59
 
ADR (Actual) $ 133.39 $ 137.56 $ 136.73 $ 130.30 $ 134.32 $ 139.58 $ 137.77 $ 131.93
Occupancy (Actual) 74.4% 81.5% 80.0% 73.5% 74.6% 81.7% 78.9% 72.5%
RevPAR (Actual) $ 99.27 $ 112.10 $ 109.45 $ 95.76 $ 100.18 $ 114.09 $ 108.70 $ 95.63
 

Reconciliation to Actual Results

 
Total Revenue (Actual) $ 292,925 $ 331,704 $ 324,926 $ 289,067 $ 298,389 $ 344,714 $ 332,197 $ 295,255

Revenue from acquisitions prior to ownership

9,372 11,480 13,375 7,130 3,629 2,415 1,064 674
Revenue from dispositions (7,933) (6,110) (4,485) (1,358) (1,335) (1,591) (648) (360)
Lease revenue intangible amortization   (47)   (47)   (51)   (51)   (66)   (66)   (66)   (66)
Comparable Hotels Total Revenue $ 294,317 $ 337,027 $ 333,765 $ 294,788 $ 300,617 $ 345,472 $ 332,547 $ 295,503
 
Adjusted Hotel EBITDA (AHEBITDA) (Actual) $ 105,832 $ 132,138 $ 125,750 $ 101,159 $ 107,091 $ 137,636 $ 125,922 $ 102,157
AHEBITDA from acquisitions prior to ownership 3,216 5,059 6,394 2,491 1,357 829 273 179
AHEBITDA from dispositions   (2,015)   (1,785)   (1,068)   (282)   (324)   (490)   (136)   (63)
Comparable Hotels AHEBITDA $ 107,033 $ 135,412 $ 131,076 $ 103,368 $ 108,124 $ 137,975 $ 126,059 $ 102,273

Note:

Comparable Hotels is defined as the 241 hotels owned by the Company as of December 31, 2018. 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 (loss) to non-GAAP financial measures is included in the following pages.

 
Apple Hospitality REIT, Inc.
Same Store Hotels Operating Metrics and Statistical Data
(Unaudited)
(in thousands except statistical data)
                                 
Three Months Ended Years Ended
December 31, December 31,
2018 2017 % Change 2018 2017 % Change
 
Total revenue $ 280,010 $ 282,018 (0.7%) $ 1,211,619 $ 1,209,648 0.2%
 
Total operating expenses   183,945   183,139 0.4%   763,269   752,977 1.4%
 
Adjusted Hotel EBITDA $ 96,065 $ 98,879 (2.8%) $ 448,350 $ 456,671 (1.8%)
Adjusted Hotel EBITDA Margin % 34.3% 35.1% (80 bps) 37.0% 37.8% (80 bps)
 
 
ADR (Same Store Hotels) $ 131.23 $ 130.44 0.6% $ 135.59 $ 134.75 0.6%
Occupancy (Same Store Hotels) 72.6% 73.9% (1.8%) 77.1% 77.7% (0.8%)
RevPAR (Same Store Hotels) $ 95.25 $ 96.38 (1.2%) $ 104.60 $ 104.76 (0.2%)
 
ADR (Actual) $ 131.93 $ 130.30 1.3% $ 136.04 $ 134.61 1.1%
Occupancy (Actual) 72.5% 73.5% (1.4%) 76.9% 77.4% (0.6%)
RevPAR (Actual) $ 95.63 $ 95.76 (0.1%) $ 104.66 $ 104.13 0.5%
 

Reconciliation to Actual Results

 
Total Revenue (Actual) $ 295,255 $ 289,067 $ 1,270,555 $ 1,238,622
Revenue from acquisitions (14,819) (5,640) (54,738) (8,892)
Revenue from dispositions (360) (1,358) (3,934) (19,886)
Lease revenue intangible amortization   (66)   (51)   (264)   (196)
Same Store Hotels Total Revenue $ 280,010 $ 282,018 $ 1,211,619 $ 1,209,648
 
Adjusted Hotel EBITDA (AHEBITDA) (Actual) $ 102,157 $ 101,159 $ 472,806 $ 464,879
AHEBITDA from acquisitions (6,029) (1,998) (23,443) (3,058)
AHEBITDA from dispositions   (63)   (282)   (1,013)   (5,150)
Same Store Hotels AHEBITDA $ 96,065 $ 98,879 $ 448,350 $ 456,671

Note:

Same Store Hotels is defined as the 230 hotels owned and held for use by the Company as of January 1, 2017 and during the entirety of the periods being compared. This information has not been audited.

 

Reconciliation of net income (loss) to non-GAAP financial measures is included in the following pages.

 
 
Apple Hospitality REIT, Inc.
Same Store Hotels Quarterly Operating Metrics and Statistical Data
(Unaudited)
(in thousands except statistical data)
                                       
Three Months Ended
3/31/2017 6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018 9/30/2018 12/31/2018
 
Total revenue $ 284,279 $ 324,304 $ 319,047 $ 282,018 $ 288,040 $ 329,190 $ 314,379 $ 280,010
 
Total operating expenses   180,611   194,439   194,788   183,139   184,553   198,178   196,593   183,945
 
Adjusted Hotel EBITDA $ 103,668 $ 129,865 $ 124,259 $ 98,879 $ 103,487 $ 131,012 $ 117,786 $ 96,065
Adjusted Hotel EBITDA Margin % 36.5% 40.0% 38.9% 35.1% 35.9% 39.8% 37.5% 34.3%
 
 
ADR (Same Store Hotels) $ 133.26 $ 137.68 $ 137.13 $ 130.44 $ 134.56 $ 139.35 $ 136.69 $ 131.23
Occupancy (Same Store Hotels) 74.8% 81.8% 80.5% 73.9% 74.8% 82.1% 79.1% 72.6%
RevPAR (Same Store Hotels) $ 99.68 $ 112.59 $ 110.37 $ 96.38 $ 100.72 $ 114.34 $ 108.12 $ 95.25
 
ADR (Actual) $ 133.39 $ 137.56 $ 136.73 $ 130.30 $ 134.32 $ 139.58 $ 137.77 $ 131.93
Occupancy (Actual) 74.4% 81.5% 80.0% 73.5% 74.6% 81.7% 78.9% 72.5%
RevPAR (Actual) $ 99.27 $ 112.10 $ 109.45 $ 95.76 $ 100.18 $ 114.09 $ 108.70 $ 95.63
 

Reconciliation to Actual Results

 
Total Revenue (Actual) $ 292,925 $ 331,704 $ 324,926 $ 289,067 $ 298,389 $ 344,714 $ 332,197 $ 295,255
Revenue from acquisitions (666) (1,243) (1,343) (5,640) (8,948) (13,867) (17,104) (14,819)
Revenue from dispositions (7,933) (6,110) (4,485) (1,358) (1,335) (1,591) (648) (360)
Lease revenue intangible amortization   (47)   (47)   (51)   (51)   (66)   (66)   (66)   (66)
Same Store Hotels Total Revenue $ 284,279 $ 324,304 $ 319,047 $ 282,018 $ 288,040 $ 329,190 $ 314,379 $ 280,010
 
Adjusted Hotel EBITDA (AHEBITDA) (Actual) $ 105,832 $ 132,138 $ 125,750 $ 101,159 $ 107,091 $ 137,636 $ 125,922 $ 102,157
AHEBITDA from acquisitions (149) (488) (423) (1,998) (3,280) (6,134) (8,000) (6,029)
AHEBITDA from dispositions   (2,015)   (1,785)   (1,068)   (282)   (324)   (490)   (136)   (63)
Same Store Hotels AHEBITDA $ 103,668 $ 129,865 $ 124,259 $ 98,879 $ 103,487 $ 131,012 $ 117,786 $ 96,065

Note:

Same Store Hotels is defined as the 230 hotels owned and held for use by the Company as of January 1, 2017 and during the entirety of the periods being compared. This information has not been audited.

 

Reconciliation of net income (loss) to non-GAAP financial measures is included in the following pages.

 

Apple Hospitality REIT, Inc. Reconciliation of Net Income (Loss) to EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted Hotel EBITDA (Unaudited) (in thousands)

EBITDA is a commonly used measure of performance in many industries and is defined as net income (loss) excluding interest, income taxes, 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 agreements governing the Companys indebtedness use EBITDA, as defined in the specific credit agreement, as a measure of financial compliance.

In addition to EBITDA, the Company also calculates and presents EBITDAre in accordance with standards established by the National Association of Real Estate Investment Trusts (Nareit), as defined in its September 2017 white paper, Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate. Nareit defines EBITDAre as EBITDA, excluding gains and losses from the sale of certain real estate assets (including gains and losses from change in control), plus real estate related impairments, and adjustments to reflect the entitys share of EBITDAre of unconsolidated affiliates. The Company presents EBITDAre because it believes that it provides further useful information to investors in comparing its operating performance between periods and between REITs that report EBITDAre using the Nareit definition.

The Company also considers the exclusion of certain additional items from EBITDAre (Adjusted EBITDAre) useful, including (i) the exclusion of transaction and litigation costs (reimbursements), as these costs 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 EBITDAre (Adjusted Hotel EBITDA) to isolate property-level operational performance over which the Companys 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 Companys hotels and effectiveness of the operators of the hotels.

The following table reconciles the Companys GAAP net income (loss) to EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted Hotel EBITDA on a quarterly basis from March 31, 2017 through December 31, 2018.

                               
Three Months Ended
3/31/2017 6/30/2017 9/30/2017 12/31/2017   3/31/2018 6/30/2018 9/30/2018 12/31/2018
Net income (loss) $ 34,365 $ 87,606 $ 62,824 $ (2,303 ) $ 42,182 $ 67,630 $ 62,122 $ 34,152
Depreciation 43,767 43,893 44,110 44,729 44,840 45,743 46,169 46,730
Amortization of favorable and unfavorable leases, net 165 168 165 165 206 148 146 147
Interest and other expense, net 11,717 11,849 12,024 11,753 11,919 13,210 13,140 12,916
Income tax expense   250   259     203   135     163   151   100   173  
EBITDA 90,264 143,775 119,326 54,479 99,310 126,882 121,677 94,118
(Gain) Loss on sale of real estate (16,140 ) 157 (312 ) (152 )
Loss on impairment of depreciable real estate assets   7,875         38,000       3,135      
EBITDAre 98,139

 

127,635

 

119,483 92,167 99,310

 

130,017

 

121,677

 

93,966
Transaction and litigation costs (reimbursements) (2,586 )
Non-cash straight-line ground lease expense   939   938     917   906     904   898   875   865  
Adjusted EBITDAre $ 99,078 $ 125,987   $ 120,400 $ 93,073   $ 100,214 $ 130,915 $ 122,552 $ 94,831  
General and administrative expense   6,754   6,151     5,350   8,086     6,877   6,721   3,370   7,326  
Adjusted Hotel EBITDA $ 105,832 $ 132,138   $ 125,750 $ 101,159   $ 107,091 $ 137,636 $ 125,922 $ 102,157  
 

Apple Hospitality REIT, Inc. Reconciliation of Net Income (Loss) to FFO and MFFO (Unaudited) (in thousands)

The Company calculates and presents FFO in accordance with standards established by Nareit, which defines FFO as net income (loss) (computed in accordance with GAAP), excluding gains and losses from the sale of certain real estate assets (including gains and losses from change in control), extraordinary items as defined by GAAP, and the cumulative effect of changes in accounting principles, plus real estate related depreciation, amortization and impairments, and adjustments for unconsolidated affiliates. 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 companys 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, including (i) the exclusion of transaction and litigation costs (reimbursements), as these costs do not represent ongoing operations, and (ii) the exclusion of amortization of favorable and unfavorable leases, net and non-cash straight-line ground lease expense, as these expenses do 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 Companys GAAP net income (loss) to FFO and MFFO for the three months and years ended December 31, 2018 and 2017.

                     

Three Months Ended December 31,

Years Ended December 31,

  2018     2017     2018     2017  
Net income (loss) $ 34,152 $ (2,303 ) $ 206,086 $ 182,492
Depreciation of real estate owned 46,490 44,500 182,527 175,581
Gain on sale of real estate (152 ) (312 ) (152 ) (16,295 )
Loss on impairment of depreciable real estate assets       38,000     3,135     45,875  
Funds from operations 80,490 79,885 391,596 387,653
Transaction and litigation reimbursements (2,586 )
Amortization of favorable and unfavorable leases, net 147 165 647 663
Non-cash straight-line ground lease expense   865     906     3,542     3,700  
Modified funds from operations $ 81,502   $ 80,956   $ 395,785   $ 389,430  
 

Apple Hospitality REIT, Inc. 2019 Guidance Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted EBITDAre (Unaudited) (in thousands)

The guidance of net income, EBITDA, EBITDAre and Adjusted EBITDAre are forward-looking statements and are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause actual results and performance to differ materially from those expressed or implied by these forecasts. Although the Company believes the expectations reflected in the forecasts are based upon reasonable assumptions, there can be no assurance that the expectations will be achieved or that the results will not be materially different. Risks that may affect these assumptions and forecasts include, but are not limited to, the following: changes in political, economic, competitive and specific market conditions; the amount and timing of acquisitions and dispositions of hotel properties; the level of capital expenditures may change significantly, which will directly affect the level of depreciation expense, interest expense and net income; the amount and timing of debt repayments may change significantly based on market conditions, which will directly affect the level of interest expense and net income; the amount and timing of transactions involving the Company’s common stock may change based on market conditions; and other risks and uncertainties associated with the Company’s business described herein and in filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

The following table reconciles the Companys GAAP net income guidance to EBITDA, EBITDAre and Adjusted EBITDAre guidance for the year ending December 31, 2019.

     
Year Ending December 31, 2019
Low-End High-End
Net income $ 167,975 $ 192,275
Depreciation 192,000 189,000
Amortization of favorable and unfavorable leases, net 175 175
Interest and other expense, net 58,000 56,000
Income tax expense 600 800
EBITDA and EBITDAre 418,750 438,250
Non-cash straight-line ground lease expense 4,250 4,750
Adjusted EBITDAre $ 423,000 $ 443,000

Note:

Guidance does not reflect the Company’s adoption of Accounting Standards Codification Topic 842, “Leases” in 2019.

 
 

  Apple Hospitality REIT, Inc.

 Debt Summary

(Unaudited)

 ($ in thousands)

December 31, 2018

 
                                 
2019 2020 2021 2022 2023 Thereafter Total Fair Market Value
Total debt:
Maturities $ 33,805 $ 28,349 $ 47,586 $ 378,052 $ 295,616 $ 634,165 $ 1,417,573 $ 1,396,638
Average interest rates (1) 3.7% 3.9% 3.9% 3.9% 3.9% 4.0%
 
Variable rate debt:
Maturities $ $ $ $ 268,800 $ 250,000 $ 410,000 $ 928,800 $ 929,435
Average interest rates (1) 3.4% 3.6% 3.8% 3.8% 3.9% 4.0%
 
Fixed rate debt:
Maturities $ 33,805 $ 28,349 $ 47,586 $ 109,252 $ 45,616 $ 224,165 $ 488,773 $ 467,203
Average interest rates 4.4% 4.4% 4.4% 4.2% 4.1% 4.1%
(1)   The average interest rate gives effect to interest rate swaps, as applicable.
 

Note:

See further information on the Companys indebtedness in the Companys Annual Report on Form 10-K for the year ended December 31, 2018.

 
 

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Market

Three Months ended December 31

(Unaudited)

 
              Occupancy     ADR     RevPAR    

% of Adjusted Hotel EBITDA

      # of Hotels     Q4 2018     Q4 2017     % Change     Q4 2018     Q4 2017     % Change     Q4 2018     Q4 2017     % Change     Q4 2018

Top 20 Markets

                       
Los Angeles/Long Beach, CA 8 89.0% 89.0% 0.0% $168.09 $163.06 3.1% $149.63 $145.13 3.1% 7.5%
San Diego, CA 7 74.6% 74.6% 0.0% $144.66 $137.29 5.4% $107.98 $102.45 5.4% 5.1%
Phoenix, AZ 9 73.4% 72.9% 0.7% $121.17 $113.81 6.5% $88.90 $82.94 7.2% 4.5%
Nashville, TN 5 79.5% 82.2% (3.2)% $169.63 $170.22 (0.4)% $134.92 $139.87 (3.5)% 3.9%
Anaheim/Santa Ana, CA 6 82.2% 85.0% (3.3)% $135.65 $137.98 (1.7)% $111.50 $117.27 (4.9)% 3.9%
Chicago, IL 8 69.0% 69.7% (1.0)% $129.49 $125.06 3.5% $89.32 $87.15 2.5% 3.4%
Richmond/Petersburg, VA 4 66.1% 68.6% (3.6)% $149.87 $148.99 0.6% $99.09 $102.19 (3.0)% 3.0%
Dallas, TX 9 68.1% 71.5% (4.8)% $117.62 $119.69 (1.7)% $80.12 $85.62 (6.4)% 2.9%
Seattle, WA 3 78.0% 75.7% 2.9% $165.26 $168.73 (2.1)% $128.85 $127.79 0.8% 2.5%
Boston, MA 4 80.8% 70.7% 14.3% $151.29 $133.11 13.7% $122.26 $94.09 29.9% 2.4%
North Carolina East 5 80.5% 67.2% 19.7% $119.32 $104.72 13.9% $96.00 $70.37 36.4% 2.2%
Austin, TX 7 64.5% 76.9% (16.2)% $120.40 $126.76 (5.0)% $77.62 $97.48 (20.4)% 1.9%
Alabama South 6 71.6% 65.2% 9.9% $120.75 $114.48 5.5% $86.46 $74.59 15.9% 1.9%
Fort Worth/Arlington, TX 5 68.4% 70.6% (3.1)% $134.25 $130.14 3.2% $91.88 $91.88 (0.0)% 1.9%
Fort Lauderdale, FL 3 86.1% 90.8% (5.1)% $134.22 $143.53 (6.5)% $115.60 $130.30 (11.3)% 1.8%
Denver, CO 3 74.9% 72.4% 3.5% $138.62 $147.81 (6.2)% $103.83 $106.98 (2.9)% 1.7%
Miami/Hialeah, FL 3 79.0% 93.0% (15.0)% $143.66 $154.79 (7.2)% $113.48 $143.92 (21.2)% 1.7%
Oklahoma City, OK 4 69.7% 72.2% (3.5)% $123.23 $126.00 (2.2)% $85.85 $91.01 (5.7)% 1.6%
Washington, DC-MD-VA 4 72.2% 76.1% (5.1)% $119.52 $122.54 (2.5)% $86.31 $93.28 (7.5)% 1.4%
Omaha, NE 4 66.2%     63.4%     4.5% $111.85     $114.21     (2.1)% $74.04     $72.36     2.3% 1.4%
Top 20 Markets 107 74.2%     75.1%     (1.2)% $136.33     $135.18     0.8% $101.17     $101.53     (0.4)% 56.6%
 
All Other Markets
Idaho 2 68.9% 70.7% (2.5)% $123.26 $123.04 0.2% $84.95 $86.95 (2.3)% 1.4%
Philadelphia, PA-NJ 3 69.8% 73.0% (4.4)% $135.89 $136.16 (0.2)% $94.86 $99.41 (4.6)% 1.3%
Houston, TX 6 60.9% 71.2% (14.5)% $115.06 $127.36 (9.7)% $70.09 $90.70 (22.7)% 1.3%
Kansas City, MO-KS 5 72.5% 72.5% 0.0% $117.17 $115.90 1.1% $84.99 $84.05 1.1% 1.3%
Atlanta, GA 3 73.8% 71.3% 3.5% $147.02 $151.04 (2.7)% $108.56 $107.73 0.8% 1.3%
Orlando, FL 3 81.4% 75.5% 7.9% $105.60 $114.25 (7.6)% $85.98 $86.23 (0.3)% 1.2%
Indiana North 3 62.7% 68.6% (8.7)% $143.03 $146.94 (2.7)% $89.62 $100.86 (11.1)% 1.1%
Birmingham, AL 4 72.0% 63.7% 13.0% $118.54 $109.34 8.4% $85.36 $69.68 22.5% 1.1%
Alaska 2 76.1% 72.3% 5.2% $150.85 $138.67 8.8% $114.79 $100.27 14.5% 1.1%
New Orleans, LA 1 77.5% 78.3% (0.9)% $190.38 $184.95 2.9% $147.64 $144.77 2.0% 1.0%
Memphis, TN-AR-MS 2 74.5% 76.0% (2.0)% $156.77 $155.32 0.9% $116.81 $118.10 (1.1)% 1.0%
Alabama North 4 71.7% 68.8% 4.2% $110.29 $107.42 2.7% $79.05 $73.86 7.0% 1.0%
Texas West 2 90.0% 70.5% 27.7% $111.33 $110.31 0.9% $100.17 $77.72 28.9% 1.0%
Newark, NJ 2 84.8% 82.9% 2.2% $154.23 $152.85 0.9% $130.71 $126.77 3.1% 1.0%
Portland, ME 1 74.6% 74.1% 0.6% $161.89 $169.48 (4.5)% $120.73 $125.61 (3.9)% 1.0%
Tucson, AZ 3 76.1% 76.0% 0.1% $104.30 $98.64 5.7% $79.35 $74.96 5.9% 1.0%
Knoxville, TN 3 76.1% 73.3% 3.8% $111.33 $111.12 0.2% $84.68 $81.41 4.0% 1.0%
Arkansas Area 3 61.9% 60.5% 2.4% $127.70 $122.56 4.2% $79.07 $74.09 6.7% 0.9%
San Jose/Santa Cruz, CA 1 82.0% 84.0% (2.3)% $230.57 $209.10 10.3% $189.15 $175.66 7.7% 0.9%
Florida Central 3 73.0% 79.8% (8.5)% $125.15 $136.07 (8.0)% $91.39 $108.59 (15.8)% 0.9%
Melbourne/Titusville, FL 1 84.0% 91.3% (8.0)% $150.38 $144.57 4.0% $126.25 $131.97 (4.3)% 0.9%
Norfolk/Virginia Beach, VA 4 68.7% 65.9% 4.2% $103.41 $100.30 3.1% $71.06 $66.14 7.4% 0.9%
Virginia Area 2 62.2% 72.5% (14.2)% $138.38 $147.44 (6.1)% $86.03 $106.89 (19.5)% 0.9%
Raleigh/Durham/Chapel Hill, NC 2 76.8% 76.6% 0.3% $120.74 $113.10 6.8% $92.72 $86.63 7.0% 0.8%
Columbia, SC 2 76.8% 76.8% 0.1% $115.88 $116.55 (0.6)% $89.04 $89.47 (0.5)% 0.8%
Tennessee Area 3 64.2% 63.4% 1.3% $105.43 $105.50 (0.1)% $67.73 $66.93 1.2% 0.8%
Sacramento, CA 1 82.7% 76.0% 8.9% $152.45 $150.42 1.3% $126.11 $114.28 10.3% 0.7%
California South/Central 3 78.3% 77.0% 1.7% $125.66 $120.80 4.0% $98.40 $93.02 5.8% 0.7%
Greensboro/Winston Salem, NC 3 66.0% 66.3% (0.4)% $119.85 $119.54 0.3% $79.16 $79.30 (0.2)% 0.7%
St Louis, MO-IL 2 67.4% 67.3% 0.1% $134.33 $129.99 3.3% $90.48 $87.49 3.4% 0.7%
Long Island 1 82.7% 86.1% (3.9)% $139.52 $134.74 3.6% $115.38 $116.00 (0.5)% 0.7%
Jacksonville, FL 2 73.9% 89.5% (17.5)% $121.99 $120.10 1.6% $90.10 $107.54 (16.2)% 0.7%
Syracuse, NY 2 64.0% 67.0% (4.4)% $151.66 $145.58 4.2% $97.13 $97.50 (0.4)% 0.7%
Louisiana South 3 64.0% 61.9% 3.2% $102.96 $108.39 (5.0)% $65.85 $67.15 (1.9)% 0.6%
Iowa Area 3 68.6% 74.7% (8.1)% $109.34 $108.67 0.6% $75.05 $81.13 (7.5)% 0.6%
Tampa/St Petersburg, FL 2 78.2% 88.7% (11.8)% $120.25 $123.32 (2.5)% $94.01 $109.36 (14.0)% 0.6%
Riverside & San Bernardino, CA 1 87.3% 86.5% 0.8% $160.27 $163.54 (2.0)% $139.84 $141.50 (1.2)% 0.6%
Salt Lake City/Ogden, UT 2 65.6% 65.3% 0.5% $111.22 $111.86 (0.6)% $72.98 $73.02 (0.1)% 0.6%
Detroit, MI 1 65.9% 68.0% (3.1)% $138.82 $136.73 1.5% $91.44 $92.95 (1.6)% 0.5%
Texas East 4 71.3% 73.0% (2.3)% $88.30 $100.18 (11.9)% $62.97 $73.13 (13.9)% 0.5%
Central New Jersey 1 66.4% 56.9% 16.8% $134.71 $129.21 4.3% $89.47 $73.47 21.8% 0.5%
Georgia South 1 85.2% 83.2% 2.4% $124.61 $98.75 26.2% $106.21 $82.15 29.3% 0.5%
Bergen/Passaic, NJ 1 84.4% 75.1% 12.4% $136.29 $141.47 (3.7)% $115.01 $106.26 8.2% 0.4%
Macon/Warner Robins, GA 1 78.2% 78.5% (0.4)% $132.07 $128.91 2.4% $103.28 $101.21 2.1% 0.4%
Portland, OR 1 71.0% 71.2% (0.4)% $126.91 $129.65 (2.1)% $90.06 $92.37 (2.5)% 0.4%
Charlotte, NC-SC 2 66.8% 70.5% (5.3)% $106.91 $101.38 5.5% $71.38 $71.45 (0.1)% 0.4%
Ohio Area 1 64.4% 62.6% 2.9% $119.74 $119.27 0.4% $77.16 $74.71 3.3% 0.4%
Mississippi 2 66.8% 68.3% (2.1)% $99.96 $106.07 (5.8)% $66.79 $72.41 (7.8)% 0.3%
Florida Panhandle 5 52.9% 66.4% (20.4)% $137.26 $107.96 27.1% $72.60 $71.70 1.3% 0.3%
Minneapolis/St Paul, MN-WI 1 68.0% 72.4% (6.0)% $126.53 $123.79 2.2% $86.06 $89.59 (3.9)% 0.3%
Charleston, SC 1 71.5% 66.9% 6.8% $110.95 $116.80 (5.0)% $79.29 $78.13 1.5% 0.3%
West Palm Beach/Boca Raton, FL 1 67.8% 89.4% (24.2)% $118.11 $117.10 0.9% $80.07 $104.66 (23.5)% 0.3%
Pittsburgh, PA 1 61.5% 66.2% (7.0)% $126.40 $120.13 5.2% $77.79 $79.50 (2.2)% 0.3%
Indianapolis, IN 1 61.8% 77.9% (20.6)% $114.02 $114.53 (0.4)% $70.51 $89.25 (21.0)% 0.3%
Cincinnati, OH-KY-IN 1 66.8% 65.2% 2.5% $115.02 $112.67 2.1% $76.89 $73.51 4.6% 0.3%
New York, NY 1 97.2% 98.9% (1.8)% $303.55 $289.32 4.9% $294.94 $286.25 3.0% 0.3%
Utah Area 1 61.8% 66.6% (7.3)% $112.23 $110.84 1.3% $69.31 $73.86 (6.2)% 0.2%
Colorado Springs, CO 1 71.4% 77.6% (8.0)% $119.62 $120.55 (0.8)% $85.39 $93.55 (8.7)% 0.2%
Baltimore, MD 1 60.2% 67.7% (11.0)% $124.85 $126.66 (1.4)% $75.20 $85.72 (12.3)% 0.2%
Savannah, GA 1 81.6% 78.1% 4.5% $120.10 $123.99 (3.1)% $98.01 $96.85 1.2% 0.2%
Greenville/Spartanburg, SC 1 67.1% 73.6% (8.8)% $125.79 $119.04 5.7% $84.40 $87.55 (3.6)% 0.2%
Sarasota/Bradenton, FL 1 75.4% 87.4% (13.8)% $114.98 $116.41 (1.2)% $86.66 $101.79 (14.9)% 0.2%
Chattanooga, TN-GA 1 86.1% 75.1% 14.6% $114.35 $116.34 (1.7)% $98.44 $87.39 12.6% 0.2%
San Antonio, TX 1 63.3% 63.9% (0.9)% $93.37 $87.38 6.9% $59.12 $55.81 5.9% 0.1%
Mobile, AL 1 64.0% 70.9% (9.8)% $102.46 $103.78 (1.3)% $65.60 $73.63 (10.9)% 0.1%
South Carolina Area 1 59.3% 63.9% (7.2)% $113.47 $112.54 0.8% $67.28 $71.92 (6.5)% 0.1%
Kansas 1 62.3% 61.6% 1.2% $92.51 $96.20 (3.8)% $57.66 $59.25 (2.7)% 0.1%
Minnesota 1 57.0%     75.7%     (24.7)% $110.02     $107.15     2.7% $62.73     $81.08     (22.6)% 0.1%
All Other Markets 134 70.9%     72.5%     (2.2)% $127.52     $126.52     0.8% $90.38     $91.68     (1.4)% 43.4%
 
                                                                     
Total Portfolio       241     72.5%     73.7%     (1.6)%     $131.88     $130.75     0.9%     $95.59     $96.40     (0.8)%     100.0%
 

Note:

 

Market categorization is based on STR designation. Top 20 markets based on Comparable Hotels Adjusted Hotel EBITDA contribution.

 
 

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Market

Years ended December 31

(Unaudited)

 
              Occupancy     ADR     RevPAR    

% of Adjusted Hotel EBITDA

      # of Hotels     YTD 2018     YTD 2017     % Change     YTD 2018     YTD 2017     % Change     YTD 2018     YTD 2017     % Change     YTD 2018
Top 20 Markets                        
Los Angeles/Long Beach, CA 8 90.0% 90.3% (0.3)% $171.66 $168.58 1.8% $154.53 $152.26 1.5% 5.6%
San Diego, CA 7 80.7% 81.1% (0.5)% $154.16 $152.72 0.9% $124.34 $123.83 0.4% 5.3%
Nashville, TN 5 84.0% 83.2% 1.0% $169.89 $171.76 (1.1)% $142.75 $142.83 (0.1)% 3.8%
Anaheim/Santa Ana, CA 6 84.4% 86.1% (2.0)% $146.63 $146.27 0.2% $123.75 $125.99 (1.8)% 3.8%
Chicago, IL 8 74.2% 73.8% 0.6% $130.00 $126.79 2.5% $96.51 $93.57 3.1% 3.5%
Phoenix, AZ 9 72.6% 72.8% (0.3)% $122.54 $121.53 0.8% $88.97 $88.49 0.5% 3.4%
Seattle, WA 3 83.8% 83.3% 0.6% $194.55 $198.96 (2.2)% $163.05 $165.82 (1.7)% 3.1%
Dallas, TX 9 71.6% 74.7% (4.1)% $120.76 $120.69 0.1% $86.48 $90.13 (4.0)% 2.8%
Richmond/Petersburg, VA 4 72.8% 74.3% (2.1)% $148.65 $149.07 (0.3)% $108.18 $110.76 (2.3)% 2.7%
Austin, TX 7 72.3% 76.6% (5.5)% $123.79 $126.88 (2.4)% $89.55 $97.16 (7.8)% 2.0%
North Carolina East 5 80.0% 77.9% 2.6% $124.25 $119.65 3.9% $99.39 $93.26 6.6% 1.9%
Denver, CO 3 78.1% 79.8% (2.1)% $150.79 $154.33 (2.3)% $117.83 $123.13 (4.3)% 1.9%
Fort Worth/Arlington, TX 5 74.2% 73.1% 1.6% $134.25 $130.12 3.2% $99.63 $95.07 4.8% 1.8%
Norfolk/Virginia Beach, VA 4 77.0% 75.8% 1.6% $143.93 $141.49 1.7% $110.82 $107.23 3.4% 1.8%
Fort Lauderdale, FL 3 88.1% 87.5% 0.7% $141.79 $140.34 1.0% $124.92 $122.79 1.7% 1.7%
Miami/Hialeah, FL 3 87.3% 89.3% (2.2)% $148.78 $148.69 0.1% $129.96 $132.77 (2.1)% 1.7%
Oklahoma City, OK 4 74.5% 77.4% (3.7)% $133.08 $132.50 0.4% $99.09 $102.49 (3.3)% 1.7%
Omaha, NE 4 71.2% 72.4% (1.6)% $129.09 $133.92 (3.6)% $91.97 $97.00 (5.2)% 1.7%
Alabama South 6 74.4% 72.5% 2.6% $116.28 $112.92 3.0% $86.46 $81.85 5.6% 1.6%
Washington, DC-MD-VA 4 77.1%     78.8%     (2.2)% $129.05     $130.47     (1.1)% $99.45     $102.82     (3.3)% 1.6%
Top 20 Markets 107 77.9%     78.7%     (1.0)% $141.65     $141.17     0.3% $110.38     $111.09     (0.6)% 53.4%
 
All Other Markets
Boston, MA 4 76.4% 74.8% 2.1% $137.46 $133.02 3.3% $105.03 $99.55 5.5% 1.5%
Alaska 2 81.6% 78.6% 3.8% $178.97 $174.58 2.5% $146.11 $137.26 6.4% 1.5%
Idaho 2 77.1% 80.0% (3.6)% $126.62 $127.97 (1.1)% $97.65 $102.33 (4.6)% 1.4%
Houston, TX 6 64.4% 67.4% (4.4)% $120.55 $124.16 (2.9)% $77.65 $83.69 (7.2)% 1.4%
Orlando, FL 3 82.9% 84.1% (1.5)% $119.56 $117.47 1.8% $99.06 $98.83 0.2% 1.4%
Atlanta, GA 3 75.9% 75.3% 0.8% $149.71 $146.20 2.4% $113.70 $110.11 3.3% 1.4%
Kansas City, MO-KS 5 75.3% 78.2% (3.7)% $118.25 $119.05 (0.7)% $89.01 $93.08 (4.4)% 1.3%
Florida Panhandle 5 71.6% 75.0% (4.5)% $124.61 $118.88 4.8% $89.23 $89.17 0.1% 1.2%
Indiana North 3 72.8% 74.0% (1.6)% $138.47 $139.97 (1.1)% $100.80 $103.57 (2.7)% 1.2%
Memphis, TN-AR-MS 2 81.6% 82.3% (0.9)% $156.94 $155.49 0.9% $128.01 $127.95 0.0% 1.1%
Philadelphia, PA-NJ 3 72.4% 73.5% (1.6)% $139.85 $138.66 0.9% $101.19 $101.95 (0.7)% 1.1%
Portland, ME 1 78.4% 76.5% 2.4% $180.55 $182.64 (1.1)% $141.49 $139.73 1.3% 1.1%
San Jose/Santa Cruz, CA 1 89.2% 89.3% (0.1)% $232.47 $217.32 7.0% $207.35 $194.10 6.8% 1.1%
Alabama North 4 76.2% 76.8% (0.8)% $112.08 $109.37 2.5% $85.43 $84.00 1.7% 1.0%
Birmingham, AL 4 74.6% 69.2% 7.7% $116.85 $108.29 7.9% $87.14 $74.96 16.3% 1.0%
Arkansas Area 3 67.0% 68.0% (1.5)% $128.82 $126.60 1.8% $86.28 $86.05 0.3% 1.0%
St Louis, MO-IL 2 73.8% 74.7% (1.1)% $144.73 $142.62 1.5% $106.87 $106.52 0.3% 1.0%
Newark, NJ 2 85.5% 82.7% 3.3% $153.63 $150.67 2.0% $131.28 $124.66 5.3% 0.9%
Knoxville, TN 3 80.8% 74.3% 8.6% $112.16 $111.89 0.2% $90.58 $83.17 8.9% 0.9%
Virginia Area 2 74.3% 79.7% (6.8)% $137.83 $146.19 (5.7)% $102.39 $116.49 (12.1)% 0.9%
Tucson, AZ 3 79.7% 77.6% 2.6% $107.23 $103.01 4.1% $85.46 $79.98 6.8% 0.9%
Melbourne/Titusville, FL 1 90.6% 89.5% 1.1% $154.38 $142.89 8.0% $139.80 $127.94 9.3% 0.9%
Florida Central 3 77.9% 79.1% (1.6)% $129.09 $134.95 (4.3)% $100.51 $106.79 (5.9)% 0.9%
Salt Lake City/Ogden, UT 2 75.0% 77.9% (3.7)% $120.72 $122.04 (1.1)% $90.56 $95.03 (4.7)% 0.8%
California South/Central 3 84.6% 85.6% (1.2)% $130.43 $124.06 5.1% $110.28 $106.18 3.9% 0.8%
Jacksonville, FL 2 84.3% 87.9% (4.0)% $124.98 $120.04 4.1% $105.37 $105.45 (0.1)% 0.8%
New Orleans, LA 1 78.3% 78.8% (0.6)% $179.33 $172.21 4.1% $140.49 $135.69 3.5% 0.8%
Tennessee Area 3 64.6% 67.8% (4.7)% $111.48 $112.92 (1.3)% $71.98 $76.50 (5.9)% 0.8%
Texas West 2 80.2% 73.0% 9.9% $115.16 $114.62 0.5% $92.37 $83.64 10.4% 0.8%
Tampa/St Petersburg, FL 2 83.5% 87.5% (4.6)% $130.36 $127.42 2.3% $108.81 $111.48 (2.4)% 0.8%
Iowa Area 3 75.7% 78.1% (3.0)% $112.94 $112.69 0.2% $85.53 $87.98 (2.8)% 0.7%
Columbia, SC 2 82.2% 80.5% 2.2% $116.34 $116.43 (0.1)% $95.65 $93.70 2.1% 0.7%
Sacramento, CA 1 87.1% 84.3% 3.4% $154.90 $150.72 2.8% $134.94 $127.00 6.3% 0.7%
Louisiana South 3 69.2% 68.4% 1.3% $105.77 $108.10 (2.1)% $73.21 $73.89 (0.9)% 0.7%
Raleigh/Durham/Chapel Hill, NC 2 78.6% 77.5% 1.4% $116.70 $111.06 5.1% $91.75 $86.09 6.6% 0.7%
Syracuse, NY 2 72.1% 67.9% 6.2% $147.18 $155.35 (5.3)% $106.15 $105.49 0.6% 0.7%
Greensboro/Winston Salem, NC 3 68.7% 71.5% (3.9)% $115.17 $115.38 (0.2)% $79.16 $82.49 (4.0)% 0.7%
Long Island 1 84.4% 83.3% 1.4% $149.46 $145.07 3.0% $126.21 $120.83 4.4% 0.7%
Texas East 4 76.7% 69.3% 10.7% $93.14 $94.25 (1.2)% $71.43 $65.27 9.4% 0.6%
Riverside & San Bernardino, CA 1 88.5% 89.3% (0.9)% $162.44 $166.52 (2.5)% $143.74 $148.63 (3.3)% 0.5%
Detroit, MI 1 72.0% 73.6% (2.1)% $141.84 $140.10 1.2% $102.18 $103.13 (0.9)% 0.5%
Portland, OR 1 77.9% 75.8% 2.8% $139.21 $136.75 1.8% $108.49 $103.65 4.7% 0.5%
Central New Jersey 1 71.8% 70.1% 2.4% $132.99 $123.84 7.4% $95.48 $86.86 9.9% 0.5%
Charlotte, NC-SC 2 72.0% 72.2% (0.3)% $105.10 $104.29 0.8% $75.62 $75.27 0.5% 0.4%
Colorado Springs, CO 1 81.6% 82.2% (0.8)% $139.85 $134.71 3.8% $114.08 $110.74 3.0% 0.4%
Bergen/Passaic, NJ 1 82.7% 80.7% 2.5% $139.15 $142.67 (2.5)% $115.14 $115.15 (0.0)% 0.4%
Macon/Warner Robins, GA 1 81.3% 82.2% (1.1)% $131.27 $128.04 2.5% $106.79 $105.27 1.4% 0.4%
West Palm Beach/Boca Raton, FL 1 75.0% 81.8% (8.4)% $126.60 $123.00 2.9% $94.93 $100.66 (5.7)% 0.4%
Charleston, SC 1 79.5% 79.0% 0.5% $117.38 $119.41 (1.7)% $93.26 $94.37 (1.2)% 0.4%
Ohio Area 1 68.3% 68.3% 0.1% $122.02 $121.97 0.0% $83.40 $83.31 0.1% 0.4%
Minneapolis/St Paul, MN-WI 1 76.8% 74.8% 2.7% $133.70 $131.53 1.7% $102.71 $98.42 4.4% 0.3%
Mississippi 2 70.7% 73.7% (4.1)% $104.25 $107.58 (3.1)% $73.69 $79.32 (7.1)% 0.3%
South Carolina Area 1 76.8% 80.2% (4.3)% $134.47 $131.08 2.6% $103.25 $105.16 (1.8)% 0.3%
Indianapolis, IN 1 74.1% 83.5% (11.3)% $119.55 $120.48 (0.8)% $88.55 $100.61 (12.0)% 0.3%
Utah Area 1 71.4% 73.4% (2.7)% $116.09 $121.54 (4.5)% $82.84 $89.17 (7.1)% 0.3%
Pittsburgh, PA 1 66.3% 67.6% (1.8)% $122.09 $119.88 1.8% $80.96 $80.99 (0.0)% 0.3%
Cincinnati, OH-KY-IN 1 70.8% 72.0% (1.7)% $123.35 $122.12 1.0% $87.29 $87.87 (0.7)% 0.3%
Savannah, GA 1 83.5% 84.5% (1.2)% $128.03 $128.83 (0.6)% $106.85 $108.80 (1.8)% 0.3%
Baltimore, MD 1 67.5% 71.9% (6.1)% $121.84 $124.35 (2.0)% $82.22 $89.36 (8.0)% 0.3%
Sarasota/Bradenton, FL 1 81.9% 90.3% (9.3)% $128.09 $130.12 (1.6)% $104.90 $117.49 (10.7)% 0.3%
Georgia South 1 79.9% 85.1% (6.0)% $104.66 $102.93 1.7% $83.65 $87.55 (4.5)% 0.2%
Greenville/Spartanburg, SC 1 79.3% 80.1% (1.0)% $119.17 $116.31 2.5% $94.48 $93.14 1.4% 0.2%
San Antonio, TX 1 73.3% 76.3% (3.9)% $97.84 $95.69 2.2% $71.76 $73.01 (1.7)% 0.2%
Mobile, AL 1 71.9% 73.1% (1.6)% $109.80 $109.17 0.6% $78.99 $79.81 (1.0)% 0.2%
Minnesota 1 70.2% 77.0% (8.8)% $112.22 $107.98 3.9% $78.79 $83.13 (5.2)% 0.2%
Chattanooga, TN-GA 1 85.2% 81.1% 5.0% $123.29 $118.81 3.8% $105.04 $96.41 9.0% 0.2%
Kansas 1 69.0% 66.7% 3.5% $93.96 $98.04 (4.2)% $64.81 $65.36 (0.8)% 0.1%
New York, NY 1 93.9%     94.3%     (0.5)% $257.49     $250.34     2.9% $241.69     $236.13     2.4% (0.4)%
All Other Markets 134 76.1%     76.7%     (0.7)% $130.84     $129.54     1.0% $99.62     $99.35     0.3% 46.6%
 

 

                                                                   
Total Portfolio       241     77.0%     77.7%     (0.9)%     $136.11     $135.22     0.7%     $104.80     $105.00     (0.2)%     100.0%
 

Note:

 

Market categorization is based on STR designation. Top 20 markets based on Comparable Hotels Adjusted Hotel EBITDA contribution.

 
                     
Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Region
Three Months ended December 31
(Unaudited)
 
Region       Occupancy   ADR   RevPAR

 

% of Adjusted Hotel EBITDA

# of Hotels Q4 2018   Q4 2017   % Change Q4 2018   Q4 2017   % Change Q4 2018   Q4 2017   % Change Q4 2018
STR Region
East North Central 15 67.0 % 69.2 % (3.2 )% $ 129.92 $ 127.54 1.9 % $ 87.09 $ 88.31 (1.4 )% 6.0 %
East South Central 30 74.1 % 71.6 % 3.4 % $ 130.87 $ 129.90 0.7 % $ 96.91 $ 93.03 4.2 % 11.1 %
Middle Atlantic 12 76.4 % 76.5 % (0.2 )% $ 168.29 $ 164.22 2.5 % $ 128.49 $ 125.62 2.3 % 5.2 %
Mountain 21 72.1 % 72.0 % 0.1 % $ 120.87 $ 118.67 1.9 % $ 87.15 $ 85.49 1.9 % 9.6 %
New England 5 79.1 % 71.6 % 10.4 % $ 154.06 $ 143.55 7.3 % $ 121.84 $ 102.84 18.5 % 3.4 %
Pacific 33 80.6 % 80.4 % 0.3 % $ 153.11 $ 149.25 2.6 % $ 123.39 $ 119.97 2.8 % 23.0 %
South Atlantic 63 72.2 % 75.2 % (4.1 )% $ 125.39 $ 125.35 0.0 % $ 90.51 $ 94.33 (4.0 )% 23.3 %
West North Central 17 67.8 % 69.1 % (1.9 )% $ 116.29 $ 115.55 0.6 % $ 78.82 $ 79.84 (1.3 )% 4.5 %
West South Central 45 67.5 % 71.1 % (5.0 )% $ 119.11 $ 122.88 (3.1 )% $ 80.41 $ 87.32 (7.9 )% 13.9 %
                                             
Total Portfolio   241   72.5 %   73.7 %   (1.6 )%   $ 131.88   $ 130.75   0.9 %   $ 95.59   $ 96.40   (0.8 )%   100.0 %

Note:

 

Region categorization is based on STR designation.

 
                     
Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Region
Years ended December 31
(Unaudited)
 
Region       Occupancy   ADR   RevPAR  

% of Adjusted Hotel EBITDA

# of Hotels YTD 2018   YTD 2017   % Change YTD 2018   YTD 2017   % Change YTD 2018   YTD 2017   % Change YTD 2018
STR Region
East North Central 15 73.3 % 73.9 % (0.8 )% $ 130.66 $ 128.75 1.5 % $ 95.83 $ 95.20 0.7 % 6.1 %
East South Central 30 77.9 % 76.8 % 1.5 % $ 131.23 $ 130.96 0.2 % $ 102.29 $ 100.58 1.7 % 10.6 %
Middle Atlantic 12 78.6 % 77.7 % 1.1 % $ 160.42 $ 158.25 1.4 % $ 126.04 $ 122.92 2.5 % 4.0 %
Mountain 21 75.5 % 76.5 % (1.3 )% $ 125.94 $ 126.26 (0.3 )% $ 95.08 $ 96.63 (1.6 )% 9.1 %
New England 5 77.0 % 75.3 % 2.2 % $ 149.64 $ 147.01 1.8 % $ 115.15 $ 110.70 4.0 % 2.6 %
Pacific 33 84.6 % 84.8 % (0.2 )% $ 163.73 $ 161.70 1.3 % $ 138.57 $ 137.15 1.0 % 23.5 %
South Atlantic 63 78.0 % 79.3 % (1.7 )% $ 131.06 $ 129.63 1.1 % $ 102.18 $ 102.85 (0.7 )% 25.0 %
West North Central 17 73.5 % 75.2 % (2.3 )% $ 124.09 $ 125.01 (0.7 )% $ 91.18 $ 94.05 (3.0 )% 5.3 %
West South Central 45 71.8 % 72.9 % (1.5 )% $ 122.46 $ 122.98 (0.4 )% $ 87.93 $ 89.63 (1.9 )% 13.8 %
                                             
Total Portfolio   241   77.0 %   77.7 %   (0.9 )%   $ 136.11   $ 135.22   0.7 %   $ 104.80   $ 105.00   (0.2 )%   100.0 %

Note:

 

Region categorization is based on STR designation.

 
         
Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Chain Scale
Three Months ended December 31
(Unaudited)
 
Chain Scale/Brand       Occupancy   ADR   RevPAR  

% of Adjusted Hotel EBITDA

# of Hotels Q4 2018   Q4 2017   % Change Q4 2018   Q4 2017   % Change Q4 2018   Q4 2017   % Change Q4 2018
Upscale            
Courtyard 40 69.6 % 70.1 % (0.7 )% $ 128.37 $ 129.20 (0.6 )% $ 89.35 $ 90.58 (1.4 )% 18.2 %
Hilton Garden Inn 42 70.9 % 71.4 % (0.7 )% $ 130.63 $ 129.73 0.7 % $ 92.63 $ 92.67 (0.0 )% 18.5 %
Homewood Suites 34 77.4 % 79.6 % (2.8 )% $ 136.23 $ 135.20 0.8 % $ 105.44 $ 107.63 (2.0 )% 13.2 %
Hyatt Place 1 68.0 % 88.2 % (22.9 )% $ 103.23 $ 96.36 7.1 % $ 70.19 $ 85.02 (17.4 )% 0.2 %
Residence Inn 33 77.3 % 77.8 % (0.6 )% $ 141.51 $ 142.38 (0.6 )% $ 109.40 $ 110.71 (1.2 )% 16.9 %
SpringHill Suites 16 72.4 %   71.5 %   1.3 % $ 116.66   $ 117.44   (0.7 )% $ 84.43   $ 83.92   0.6 % 6.2 %
Upscale Total 166 73.1 %   73.8 %   (1.1 )% $ 131.72   $ 131.68   0.0 % $ 96.23   $ 97.22   (1.0 )% 73.2 %
 
Upper Midscale
Fairfield Inn/Fairfield Inn & Suites 11 73.7 % 76.3 % (3.4 )% $ 116.61 $ 116.40 0.2 % $ 85.98 $ 88.81 (3.2 )% 3.8 %
Hampton Inn/Hampton Inn & Suites 40 70.5 % 73.1 % (3.5 )% $ 130.54 $ 126.54 3.2 % $ 92.02 $ 92.46 (0.5 )% 14.3 %
Home2 Suites 8 77.8 % 72.4 % 7.6 % $ 128.53 $ 122.82 4.6 % $ 100.06 $ 88.88 12.6 % 3.5 %
TownePlace Suites 11 65.6 %   71.6 %   (8.3 )% $ 101.79   $ 99.81   2.0 % $ 66.79   $ 71.43   (6.5 )% 2.0 %
Upper Midscale Total 70 71.1 %   73.3 %   (2.9 )% $ 124.53   $ 120.88   3.0 % $ 88.60   $ 88.60   (0.0 )% 23.6 %
 
Upper Upscale
Embassy Suites 2 81.3 % 83.2 % (2.2 )% $ 156.83 $ 150.98 3.9 % $ 127.56 $ 125.55 1.6 % 1.2 %
Marriott 2 58.1 % 62.8 % (7.5 )% $ 146.15 $ 148.11 (1.3 )% $ 84.96 $ 93.04 (8.7 )% 1.7 %
Renaissance 1 97.2 %   98.9 %   (1.8 )% $ 303.55   $ 289.32   4.9 % $ 294.94   $ 286.25   3.0 % 0.3 %
Upper Upscale Total 5 71.7 %   75.0 %   (4.4 )% $ 188.29   $ 182.59   3.1 % $ 134.94   $ 136.91   (1.4 )% 3.2 %
                                             
Total Portfolio   241   72.5 %   73.7 %   (1.6 )%   $ 131.88   $ 130.75   0.9 %   $ 95.59   $ 96.40   (0.8 )%   100.0 %

Note:

 

Chain scale categorization is based on STR designation.

 
         
Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Chain Scale
Years ended December 31
(Unaudited)
 
Chain Scale/Brand       Occupancy   ADR   RevPAR  

% of Adjusted Hotel EBITDA

# of Hotels YTD 2018   YTD 2017   % Change YTD 2018   YTD 2017   % Change YTD 2018   YTD 2017   % Change YTD 2018
Upscale            
Courtyard 40 74.1 % 74.2 % (0.1 )% $ 138.08 $ 138.95 (0.6 )% $ 102.32 $ 103.09 (0.7 )% 18.8 %
Hilton Garden Inn 42 75.4 % 75.6 % (0.2 )% $ 134.23 $ 133.57 0.5 % $ 101.20 $ 100.92 0.3 % 18.2 %
Homewood Suites 34 81.7 % 82.2 % (0.6 )% $ 139.18 $ 136.43 2.0 % $ 113.72 $ 112.18 1.4 % 13.1 %
Hyatt Place 1 82.7 % 85.5 % (3.3 )% $ 102.73 $ 95.37 7.7 % $ 84.91 $ 81.51 4.2 % 0.3 %
Residence Inn 33 80.5 % 80.8 % (0.3 )% $ 147.59 $ 148.13 (0.4 )% $ 118.83 $ 119.64 (0.7 )% 16.5 %
SpringHill Suites 16 77.3 %   77.7 %   (0.5 )% $ 121.91   $ 121.24   0.5 % $ 94.20   $ 94.16   0.0 % 6.3 %
Upscale Total 166 77.4 %   77.6 %   (0.4 )% $ 137.23   $ 136.74   0.4 % $ 106.19   $ 106.18   0.0 % 73.2 %
 
Upper Midscale
Fairfield Inn/Fairfield Inn & Suites 11 76.0 % 78.9 % (3.7 )% $ 118.46 $ 118.91 (0.4 )% $ 89.99 $ 93.84 (4.1 )% 3.3 %
Hampton Inn/Hampton Inn & Suites 40 75.6 % 77.6 % (2.5 )% $ 133.65 $ 130.94 2.1 % $ 101.08 $ 101.61 (0.5 )% 14.8 %
Home2 Suites 8 81.7 % 79.3 % 3.1 % $ 129.83 $ 128.22 1.3 % $ 106.12 $ 101.64 4.4 % 3.4 %
TownePlace Suites 11 75.1 %   76.3 %   (1.6 )% $ 104.69   $ 105.00   (0.3 )% $ 78.64   $ 80.16   (1.9 )% 2.6 %
Upper Midscale Total 70 76.3 %   77.8 %   (2.0 )% $ 127.00   $ 125.18   1.5 % $ 96.89   $ 97.41   (0.5 )% 24.1 %
 
Upper Upscale
Embassy Suites 2 85.5 % 86.9 % (1.6 )% $ 179.67 $ 171.46 4.8 % $ 153.63 $ 149.05 3.1 % 1.5 %
Marriott 2 63.6 % 65.5 % (2.9 )% $ 145.61 $ 149.05 (2.3 )% $ 92.62 $ 97.62 (5.1 )% 1.6 %
Renaissance 1 93.9 %   94.3 %   (0.5 )% $ 257.49   $ 250.34   2.9 % $ 241.69   $ 236.13   2.4 % (0.4 )%
Upper Upscale Total 5 75.2 %   76.6 %   (1.9 )% $ 181.62   $ 178.59   1.7 % $ 136.50   $ 136.89   (0.3 )% 2.7 %
                                             
Total Portfolio   241   77.0 %   77.7 %   (0.9 )%   $ 136.11   $ 135.22   0.7 %   $ 104.80   $ 105.00   (0.2 )%   100.0 %

Note:

 

Chain scale categorization is based on STR designation.

 
         
Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Location
Three Months ended December 31
(Unaudited)
 
Location       Occupancy   ADR   RevPAR  

% of Adjusted Hotel EBITDA

# of Hotels Q4 2018   Q4 2017   % Change Q4 2018   Q4 2017   % Change Q4 2018   Q4 2017   % Change Q4 2018
STR Location            
Airport 17 75.7 % 77.8 % (2.8 )% $ 129.25 $ 128.92 0.3 % $ 97.80 $ 100.33 (2.5 )% 6.3 %
Interstate 8 70.4 % 67.7 % 4.0 % $ 106.03 $ 105.98 0.0 % $ 74.67 $ 71.78 4.0 % 2.4 %
Resort 9 70.9 % 75.0 % (5.6 )% $ 122.56 $ 124.12 (1.3 )% $ 86.85 $ 93.13 (6.7 )% 3.2 %
Small Metro/Town 18 73.9 % 67.7 % 9.2 % $ 112.43 $ 107.93 4.2 % $ 83.09 $ 73.08 13.7 % 5.6 %
Suburban 146 72.8 % 74.7 % (2.6 )% $ 128.77 $ 127.75 0.8 % $ 93.71 $ 95.42 (1.8 )% 57.1 %
Urban 43 70.9 % 72.2 % (1.7 )% $ 152.51 $ 151.03 1.0 % $ 108.20 $ 108.97 (0.7 )% 25.4 %
                                             
Total Portfolio   241   72.5 %   73.7 %   (1.6 )%   $ 131.88   $ 130.75   0.9 %   $ 95.59   $ 96.40   (0.8 )%   100.0 %

Note:

 

Location categorization is based on STR designation.

 
         
Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Location
Years ended December 31
(Unaudited)
 
Location       Occupancy   ADR   RevPAR  

% of Adjusted Hotel EBITDA

# of Hotels YTD 2018   YTD 2017   % Change YTD 2018   YTD 2017   % Change YTD 2018   YTD 2017   % Change YTD 2018
STR Location            
Airport 17 81.8 % 81.8 % (0.0 )% $ 132.68 $ 130.34 1.8 % $ 108.56 $ 106.67 1.8 % 6.8 %
Interstate 8 71.1 % 71.7 % (0.8 )% $ 108.62 $ 110.92 (2.1 )% $ 77.28 $ 79.55 (2.9 )% 2.1 %
Resort 9 78.9 % 80.6 % (2.2 )% $ 145.45 $ 140.50 3.5 % $ 114.75 $ 113.30 1.3 % 5.0 %
Small Metro/Town 18 74.5 % 72.0 % 3.5 % $ 111.83 $ 112.27 (0.4 )% $ 83.35 $ 80.86 3.1 % 4.8 %
Suburban 146 77.1 % 77.8 % (0.8 )% $ 132.56 $ 131.32 1.0 % $ 102.25 $ 102.16 0.1 % 56.4 %
Urban 43 76.3 % 77.8 % (2.0 )% $ 155.49 $ 156.46 (0.6 )% $ 118.60 $ 121.75 (2.6 )% 24.9 %
                                             
Total Portfolio   241   77.0 %   77.7 %   (0.9 )%   $ 136.11   $ 135.22   0.7 %   $ 104.80   $ 105.00   (0.2 )%   100.0 %

Note:

 

Location categorization is based on STR designation.

 

Apple Hospitality REIT, Inc.
Kelly Clarke, Vice President, Investor
Relations
(804) 727-6321
[email protected]