Market Overview

Apple Hospitality REIT Reports Results of Operations for Second Quarter 2018

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Apple Hospitality REIT, Inc. (NYSE:APLE) (the "Company" or "Apple
Hospitality") today announced results of operations for the second
quarter of 2018.

       
Selected Statistical and Financial Data
As of and For the Three and Six Months Ended June 30

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

 
Three Months Ended
June 30,
Six Months Ended
June 30,
2018     2017     % Change 2018     2017     % Change
 
Net income $ 67,630 $ 87,606 (22.8 %) $ 109,812 $ 121,971 (10.0 %)
Net income per share $ 0.29 $ 0.39 (25.6 %) $ 0.48 $ 0.55 (12.7 %)
 
Adjusted EBITDA $ 130,915 $ 125,987 3.9 % $ 231,129 $ 225,065 2.7 %
Comparable Hotels Adjusted Hotel EBITDA $ 137,845 $ 135,239 1.9 % $ 245,678 $ 242,227 1.4 %
Comparable Hotels Adjusted Hotel EBITDA Margin 40.0 % 40.2 % (20 bps) 38.1 % 38.4 % (30 bps)
Modified funds from operations (MFFO) $ 117,313 $ 113,650 3.2 % $ 205,215 $ 200,531 2.3 %
MFFO per share $ 0.51 $ 0.51 - $ 0.89 $ 0.90 (1.1 %)
 
Average Daily Rate (ADR) (Actual) $ 139.58 $ 137.56 1.5 % $ 137.09 $ 135.58 1.1 %
Occupancy (Actual) 81.7 % 81.5 % 0.2 % 78.2 % 78.0 % 0.3 %
Revenue Per Available Room (RevPAR) (Actual) $ 114.09 $ 112.10 1.8 % $ 107.20 $ 105.70 1.4 %
 
Comparable Hotels ADR $ 139.83 $ 138.22 1.2 % $ 137.39 $ 135.95 1.1 %
Comparable Hotels Occupancy 81.8 % 81.7 % 0.1 % 78.3 % 78.2 % 0.1 %
Comparable Hotels RevPAR $ 114.38 $ 112.88 1.3 % $ 107.52 $ 106.31 1.1 %
 
Distributions paid $ 69,060 $ 66,903 3.2 % $ 138,204 $ 133,811 3.3 %
Distributions paid per share $ 0.30 $ 0.30 - $ 0.60 $ 0.60 -
 
Total debt outstanding $ 1,373,767
Total debt to total capitalization (2) 25.0 %
 
(1) Explanations of and reconciliations to net income
determined in accordance with generally accepted accounting
principles ("GAAP") of non-GAAP financial measures, Adjusted EBITDA,
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 Company's closing share
price of $17.88 on June 30, 2018.
 

Comparable Hotels is defined as the 241 hotels owned and held
for use by the Company as of June 30, 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 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.

 

Justin Knight, President and Chief Executive Officer of Apple
Hospitality REIT, commented, "Hotel operations for our portfolio during
the second quarter and first half of 2018 were generally in line with
our expectations. Despite continued inflationary and wage pressures and
moderate rate growth, we produced industry-leading margins of 40 percent
for the quarter. Subsequent to the quarter, we successfully refinanced
over $1 billion of our credit facilities, extending their maturities and
reducing their applicable spreads. We appreciate the support of our
lenders and their recognition of the relative performance and stability
of our Company, another example of the benefits of our operating
philosophy. As we enter the second half of the year, we are confident in
our ability to effectively manage our business and to maximize the value
of opportunities as they arise."

Portfolio Activity

Acquisitions

During the first six months of 2018, Apple Hospitality acquired four
hotels for a combined total purchase price of approximately $137
million. The following acquisitions were completed during the second
quarter of 2018:

  • On May 2, 2018, the Company acquired a newly built 210-room Hampton
    Inn & Suites by Hilton in Phoenix, Arizona, for a total purchase price
    of approximately $44 million.
  • On June 28, 2018, the Company acquired an existing 132-room Hampton
    Inn & Suites by Hilton in Atlanta, Georgia, for a total purchase price
    of approximately $30 million.

Contracts for Potential Acquisitions

During the second quarter of 2018, the Company entered into contracts
for the potential purchase of four hotels. Each of the hotels has a
current planned opening in 2020, at which time closings on these hotels
are expected to occur. There are many conditions to closing under each
of the contracts, including completion of construction, and there can be
no assurance the hotels will be acquired. The contracts are for:

  • A planned dual-branded Hampton Inn & Suites by Hilton and Home2 Suites
    by Hilton property in Cape Canaveral, Florida, with a combined total
    of 224 guest rooms and a purchase price of approximately $47 million.
  • A planned dual-branded Hyatt House and Hyatt Place property in Tempe,
    Arizona, with a combined total of 254 guest rooms and a purchase price
    of approximately $63 million.

Dispositions and Potential Disposition

On July 13, 2018, the Company sold the 86-room TownePlace Suites by
Marriott and the 89-room SpringHill Suites by Marriott hotels in
Columbus, Georgia, for a total combined gross sales price of $10
million. The Company used the net proceeds from the sales to pay down
borrowings on its revolving credit facility. The hotels were classified
as assets held for sale at June 30, 2018, and a total impairment loss of
approximately $0.5 million was recognized in the second quarter of 2018
on the two hotels.

Also during the quarter, the Company committed to sell its 72-room
Residence Inn by Marriott in Springdale, Arkansas. As a result, the
Company recognized an impairment loss of approximately $2.6 million in
the second quarter of 2018 on this hotel due to the change in its
anticipated hold period.

Capital Improvements

Apple Hospitality consistently reinvests in its hotels to maintain and
enhance each property's relevance and competitive position within its
respective market. During the six months ended June 30, 2018, the
Company invested approximately $31 million in capital expenditures. The
Company anticipates investing an additional $35 million to $45 million
in capital improvements during the remainder of 2018, which includes
various scheduled renovation projects for approximately 20 to 25
properties.

Balance Sheet and Capital Markets

As of June 30, 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 the remainder of 2018.
Excluding unamortized debt issuance costs and fair value adjustments,
the Company's total outstanding indebtedness is comprised of
approximately $495 million in property-level debt secured by 31 hotels
and $878 million outstanding on its unsecured credit facilities. Apple
Hospitality's undrawn capacity on its unsecured credit facilities at
June 30, 2018, was approximately $322 million. The Company's total debt
to total capitalization at June 30, 2018, was approximately 25 percent,
which provides Apple Hospitality with financial flexibility to fund
capital requirements and pursue opportunities in the marketplace.

In July and August 2018, the Company entered into an amendment and
restatement of its $965 million credit facility and its $150 million
term loan facility, each of which were repaid and extinguished at
closing. The amendments and restatements effectively extended the
maturities of the existing facilities, improved the pricing grids which
reduced the applicable spreads by an average of 15 basis points, and
improved certain covenants under the prior agreements for the Company.
The $965 million credit facility was reduced to $850 million, and the
$150 million term loan facility was increased to $225 million. The new
$850 million credit facility is comprised of (i) a $425 million
revolving credit facility with an initial maturity date of July 27, 2022
(at closing the Company borrowed approximately $196 million under the
revolving credit facility) and (ii) a $200 million term loan with a
maturity date of July 27, 2023, and a $225 million term loan with a
maturity date of January 31, 2024, both funded at closing. The $225
million term loan facility is comprised of a $50 million term loan with
a maturity date of August 2, 2023, and a $175 million term loan with a
maturity date of August 2, 2025. The interest rates under the
facilities, subject to certain exceptions, are equal to an annual rate
of the one-month LIBOR plus a margin ranging from 1.35 to 2.50 percent,
depending upon the Company's leverage ratio, as calculated under the
terms of the credit agreements. After the completion of these recasts,
the Company's weighted-average debt maturities are six years, and the
weighted-average maturity of its effectively fixed rate debt is five
years at a weighted-average interest rate of 3.9 percent.

Shareholder Distributions

Apple Hospitality paid distributions of $0.30 per common share during
the three-month period ended June 30, 2018. Based on the Company's
common share closing price of $18.02 on August 2, 2018, the annualized
distribution rate of $1.20 per common share represents an annual yield
of approximately 6.7 percent. The Company's Board of Directors, in
consultation with management, will continue to regularly monitor the
Company's distribution rate relative to the performance of its hotels,
capital improvement needs, varying economic cycles, acquisitions and
dispositions. At its discretion, the Company's Board of Directors may
make adjustments as determined to be prudent in relation to other cash
requirements of the Company.

2018 Outlook

Apple Hospitality is providing its operational and financial outlook for
2018. This outlook, which is based on management's current view of both
operating and economic fundamentals of the Company's existing portfolio
of hotels, does not take into account any unanticipated developments in
its business or changes in its operating environment, nor does it take
into account any unannounced hotel acquisitions or dispositions.
Comparable Hotels RevPAR Growth and Comparable Hotels Adjusted Hotel
EBITDA Margin % guidance include properties acquired, as if the hotels
were owned as of January 1, 2017, and exclude completed dispositions
since January 1, 2017. For the full year 2018, the Company anticipates:

       
2018 Guidance(1)
Low-End High-End
 
Net income $193 Million $217 Million
 
Comparable Hotels RevPAR Growth 0.0% 2.0%
 
Comparable Hotels Adjusted Hotel EBITDA Margin % 36.8% 37.8%
 
Adjusted EBITDA $437 Million $457 Million
 
(1)   Explanations of and reconciliations to net income guidance of
Adjusted EBITDA guidance are included below.
 

Earnings Call

The Company will host a quarterly conference call for investors and
interested parties on Tuesday, August 7, 2018, 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 August 7, 2018, through 11:59 p.m. Eastern Time on
August 21, 2018. 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 13680967. 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, select-service hotels in the United
States. Apple Hospitality's portfolio consists of 241 hotels with more
than 30,700 guest rooms located in 88 markets throughout 34 states.
Franchised with industry-leading brands, the Company's portfolio
comprises 115 Marriott-branded hotels and 126 Hilton-branded hotels. 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");
Adjusted EBITDA ("Adjusted EBITDA"); and Adjusted Hotel EBITDA
("Adjusted Hotel EBITDA"). These non-GAAP financial measures should be
considered along with, but not as alternatives to, net income (loss),
cash flow from operations, or any other operating GAAP measure. FFO,
MFFO, EBITDA, Adjusted EBITDA and Adjusted Hotel EBITDA are not
necessarily indicative of funds available to fund the Company's cash
needs, including its ability to make cash distributions. Although FFO,
MFFO, EBITDA, Adjusted EBITDA and Adjusted Hotel EBITDA, as calculated
by the Company, may not be comparable to FFO, MFFO, EBITDA, Adjusted
EBITDA and Adjusted Hotel EBITDA, as reported by other companies that do
not define such terms exactly as the Company defines such terms, the
Company believes these supplemental measures are useful to investors
when comparing the Company's results between periods and with other
REITs. 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 Hospitality's business, assets or classification as a
real estate investment trust. Although Apple Hospitality believes that
the assumptions underlying the forward-looking statements contained
herein are reasonable, any of the assumptions could be inaccurate, and
therefore there can be no assurance that such statements included in
this press release will prove to be accurate. In light of the
significant uncertainties inherent in the forward-looking statements
included herein, the inclusion of such information should not be
regarded as a representation by Apple Hospitality or any other person
that the results or conditions described in such statements or the
objectives and plans of Apple Hospitality will be achieved. In addition,
Apple Hospitality's qualification as a real estate investment trust
involves the application of highly technical and complex provisions of
the Internal Revenue Code. Readers should carefully review Apple
Hospitality's financial statements and the notes thereto, as well as the
risk factors described in Apple Hospitality's filings with the
Securities and Exchange Commission, including, but not limited to, in
the section titled "Risk Factors" in the Company's Annual Report on Form
10-K for the year ended December 31, 2017. 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)
 
    June 30,
2018
    December 31,
2017
(unaudited)
Assets

Investment in real estate, net of accumulated depreciation of
$818,794 and $731,284, respectively

$ 4,858,216 $ 4,793,159
Assets held for sale 9,800 -
Restricted cash-furniture, fixtures and other escrows 32,279 29,791
Due from third party managers, net 61,660 31,457
Other assets, net   56,929     47,931  
Total Assets $ 5,018,884   $ 4,902,338  
 
Liabilities
Revolving credit facility $ 218,400 $ 106,900
Term loans 656,860 656,279
Mortgage debt 496,916 459,017
Accounts payable and other liabilities   89,471     109,057  
Total Liabilities 1,461,647 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 230,347,462 and 229,961,548 shares, respectively

4,594,700 4,588,188
Accumulated other comprehensive income 17,810 9,778
Distributions greater than net income   (1,055,273 )   (1,026,881 )
Total Shareholders' Equity   3,557,237     3,571,085  
 
Total Liabilities and Shareholders' Equity $ 5,018,884   $ 4,902,338  
 

Note:

The Consolidated Balance Sheets and corresponding footnotes can
be found in the Company's Quarterly Report on Form 10-Q for the
quarter ended June 30, 2018.

 
 
Apple Hospitality REIT, Inc.
Consolidated Statements of Operations and Comprehensive Income
(Unaudited) (in thousands, except per share data)
 
    Three Months Ended
June 30,
    Six Months Ended
June 30,
2018     2017 2018     2017
Revenues:
Room $ 319,022 $ 306,283 $ 593,858 $ 575,676
Food and beverage 16,518 17,932 32,228 34,665
Other   9,174     7,489     17,017     14,288  
Total revenue 344,714 331,704 643,103 624,629
 
Expenses:
Operating 81,242 80,345 157,196 155,499
Hotel administrative 26,558 25,217 51,660 50,053
Sales and marketing 28,168 26,270 53,500 50,379
Utilities 10,247 10,193 20,530 19,946
Repair and maintenance 13,476 12,279 25,929 24,195
Franchise fees 14,781 14,163 27,514 26,637
Management fees 12,059 11,545 22,531 21,757
Property taxes, insurance and other 18,681 17,821 35,910 34,748
Ground lease 2,912 2,839 5,762 5,655
General and administrative 6,721 6,151 13,598 12,905
Transaction and litigation costs (reimbursements) - (2,586 ) - (2,586 )
Loss on impairment of depreciable real estate assets 3,135 - 3,135 7,875
Depreciation   45,743     43,893     90,583     87,660  
Total expenses   263,723     248,130     507,848     494,723  
 
Operating income 80,991 83,574 135,255 129,906
 
Interest and other expense, net (13,210 ) (11,849 ) (25,129 ) (23,566 )
Gain on sale of real estate   -     16,140     -     16,140  
 
Income before income taxes 67,781 87,865 110,126 122,480
 
Income tax expense   (151 )   (259 )   (314 )   (509 )
 
Net income $ 67,630   $ 87,606   $ 109,812   $ 121,971  
 
Other comprehensive income (loss):
Interest rate derivatives   1,740     (1,175 )   8,032     370  
 
Comprehensive income $ 69,370   $ 86,431   $ 117,844   $ 122,341  
 
Basic and diluted net income per common share $ 0.29   $ 0.39   $ 0.48   $ 0.55  
 
Weighted average common shares outstanding - basic and diluted 230,342 223,052 230,428 223,049
 

Note:

The Consolidated Statements of Operations and Comprehensive
Income and corresponding footnotes can be found in the Company's
Quarterly Report on Form 10-Q for the quarter ended June 30, 2018.

 
 
Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics and Statistical Data
(Unaudited)
(in thousands except statistical data)
 
    Three Months Ended
June 30,
    Six Months Ended
June 30,
2018     2017     % Change 2018     2017     % Change
 
Total revenue $ 344,985 $ 336,573 2.5 % $ 644,973 $ 630,428 2.3 %
 
Total operating expenses   207,140     201,334   2.9 %   399,295     388,201   2.9 %
 
Adjusted Hotel EBITDA $ 137,845   $ 135,239   1.9 % $ 245,678   $ 242,227   1.4 %
Adjusted Hotel EBITDA Margin % 40.0 % 40.2 % (20 bps) 38.1 % 38.4 % (30 bps)
 
 
ADR (Comparable Hotels) $ 139.83 $ 138.22 1.2 % $ 137.39 $ 135.95 1.1 %
Occupancy (Comparable Hotels) 81.8 % 81.7 % 0.1 % 78.3 % 78.2 % 0.1 %
RevPAR (Comparable Hotels) $ 114.38 $ 112.88 1.3 % $ 107.52 $ 106.31 1.1 %
 
ADR (Actual) $ 139.58 $ 137.56 1.5 % $ 137.09 $ 135.58 1.1 %
Occupancy (Actual) 81.7 % 81.5 % 0.2 % 78.2 % 78.0 % 0.3 %
RevPAR (Actual) $ 114.09 $ 112.10 1.8 % $ 107.20 $ 105.70 1.4 %
 

Reconciliation to Actual Results

 
Total Revenue (Actual) $ 344,714 $ 331,704 $ 643,103 $ 624,629
Revenue from acquisitions prior to ownership 1,315 10,449 3,829 18,911
Revenue from dispositions/assets held for sale (978 ) (5,533 ) (1,827 ) (13,018 )
Lease revenue intangible amortization   (66 )   (47 )   (132 )   (94 )
Comparable Hotels Total Revenue $ 344,985   $ 336,573   $ 644,973   $ 630,428  
 
Adjusted Hotel EBITDA (AHEBITDA) (Actual) $ 137,636 $ 132,138 $ 244,727 $ 237,970
AHEBITDA from acquisitions prior to ownership 494 4,687 1,457 7,716
AHEBITDA from dispositions/assets held for sale   (285 )   (1,586 )   (506 )   (3,459 )
Comparable Hotels AHEBITDA $ 137,845   $ 135,239   $ 245,678   $ 242,227  
 

Note:

Comparable Hotels is defined as the 241 hotels owned and held
for use by the Company as of June 30, 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 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.

 
 
Apple Hospitality REIT, Inc.
Comparable Hotels Quarterly Operating Metrics and Statistical Data
(Unaudited)
(in thousands except statistical data)
 
    Three Months Ended
9/30/2016     12/31/2016     3/31/2017     6/30/2017     9/30/2017     12/31/2017     3/31/2018     6/30/2018
 
Total revenue $ 327,598 $ 281,856 $ 293,855 $ 336,573 $ 333,241 $ 294,197 $ 299,988 $ 344,985
 
Total operating expenses   198,662     181,617     186,867     201,334     202,332     191,021     192,155     207,140  
 
Adjusted Hotel EBITDA $ 128,936   $ 100,239   $ 106,988   $ 135,239   $ 130,909   $ 103,176   $ 107,833   $ 137,845  
Adjusted Hotel EBITDA Margin % 39.4 % 35.6 % 36.4 % 40.2 % 39.3 % 35.1 % 35.9 % 40.0 %
 
 
ADR (Comparable Hotels) $ 136.22 $ 128.38 $ 133.44 $ 138.22 $ 138.27 $ 130.87 $ 134.69 $ 139.83
Occupancy (Comparable Hotels) 80.4 % 72.5 % 74.7 % 81.7 % 80.4 % 73.7 % 74.6 % 81.8 %
RevPAR (Comparable Hotels) $ 109.55 $ 93.13 $ 99.65 $ 112.88 $ 111.20 $ 96.39 $ 100.54 $ 114.38
 
ADR (Actual) $ 136.04 $ 127.81 $ 133.39 $ 137.56 $ 136.73 $ 130.30 $ 134.32 $ 139.58
Occupancy (Actual) 80.2 % 72.4 % 74.4 % 81.5 % 80.0 % 73.5 % 74.6 % 81.7 %
RevPAR (Actual) $ 109.07 $ 92.52 $ 99.27 $ 112.10 $ 109.45 $ 95.76 $ 100.18 $ 114.09
 

Reconciliation to Actual Results

 
Total Revenue (Actual) $ 276,471 $ 282,431 $ 292,925 $ 331,704 $ 324,926 $ 289,067 $ 298,389 $ 344,714
Revenue from acquisitions prior to ownership 60,962 8,497 8,462 10,449 12,346 6,066 2,514 1,315
Revenue from dispositions/assets held for sale (9,788 ) (9,025 ) (7,485 ) (5,533 ) (3,980 ) (885 ) (849 ) (978 )
Lease revenue intangible amortization   (47 )   (47 )   (47 )   (47 )   (51 )   (51 )   (66 )   (66 )
Comparable Hotels Total Revenue $ 327,598   $ 281,856   $ 293,855   $ 336,573   $ 333,241   $ 294,197   $ 299,988   $ 344,985  
 
Adjusted Hotel EBITDA (AHEBITDA) (Actual) $ 106,707 $ 99,291 $ 105,832 $ 132,138 $ 125,750 $ 101,159 $ 107,091 $ 137,636
AHEBITDA from acquisitions prior to ownership 24,749 3,286 3,029 4,687 6,112 2,178 963 494
AHEBITDA from dispositions/assets held for sale   (2,520 )   (2,338 )   (1,873 )   (1,586 )   (953 )   (161 )   (221 )   (285 )
Comparable Hotels AHEBITDA $ 128,936   $ 100,239   $ 106,988   $ 135,239   $ 130,909   $ 103,176   $ 107,833   $ 137,845  
 

Note:

Comparable Hotels is defined as the 241 hotels owned and held
for use by the Company as of June 30, 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 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 (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
June 30,
    Six Months Ended
June 30,
2018     2017     % Change 2018     2017     % Change
 
Total revenue $ 329,804 $ 324,882 1.5 % $ 618,330 $ 609,608 1.4 %
 
Total operating expenses   198,587     194,817   1.9 %   383,522     375,733   2.1 %
 
Adjusted Hotel EBITDA $ 131,217   $ 130,065   0.9 % $ 234,808   $ 233,875   0.4 %
Adjusted Hotel EBITDA Margin % 39.8 % 40.0 % (20 bps) 38.0 % 38.4 % (40 bps)
 
 
ADR (Same Store Hotels) $ 139.28 $ 137.60 1.2 % $ 137.01 $ 135.50 1.1 %
Occupancy (Same Store Hotels) 82.1 % 81.8 % 0.4 % 78.5 % 78.3 % 0.3 %
RevPAR (Same Store Hotels) $ 114.29 $ 112.53 1.6 % $ 107.51 $ 106.10 1.3 %
 
ADR (Actual) $ 139.58 $ 137.56 1.5 % $ 137.09 $ 135.58 1.1 %
Occupancy (Actual) 81.7 % 81.5 % 0.2 % 78.2 % 78.0 % 0.3 %
RevPAR (Actual) $ 114.09 $ 112.10 1.8 % $ 107.20 $ 105.70 1.4 %
 

Reconciliation to Actual Results

 
Total Revenue (Actual) $ 344,714 $ 331,704 $ 643,103 $ 624,629
Revenue from acquisitions (13,866 ) (1,242 ) (22,814 ) (1,909 )
Revenue from dispositions/assets held for sale (978 ) (5,533 ) (1,827 ) (13,018 )
Lease revenue intangible amortization   (66 )   (47 )   (132 )   (94 )
Same Store Hotels Total Revenue $ 329,804   $ 324,882   $ 618,330   $ 609,608  
 
Adjusted Hotel EBITDA (AHEBITDA) (Actual) $ 137,636 $ 132,138 $ 244,727 $ 237,970
AHEBITDA from acquisitions (6,134 ) (487 ) (9,413 ) (636 )
AHEBITDA from dispositions/assets held for sale   (285 )   (1,586 )   (506 )   (3,459 )
Same Store Hotels AHEBITDA $ 131,217   $ 130,065   $ 234,808   $ 233,875  
 

Note:

Same Store Hotels is defined as the 231 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 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
 
Total revenue $ 284,726 $ 324,882 $ 319,552 $ 282,490 $ 288,526 $ 329,804
 
Total operating expenses   180,916     194,817     195,179     183,492     184,935     198,587  
 
Adjusted Hotel EBITDA $ 103,810   $ 130,065   $ 124,373   $ 98,998   $ 103,591   $ 131,217  
Adjusted Hotel EBITDA Margin % 36.5 % 40.0 % 38.9 % 35.0 % 35.9 % 39.8 %
 
 
ADR (Same Store Hotels) $ 133.19 $ 137.60 $ 137.07 $ 130.38 $ 134.50 $ 139.28
Occupancy (Same Store Hotels) 74.8 % 81.8 % 80.5 % 73.9 % 74.8 % 82.1 %
RevPAR (Same Store Hotels) $ 99.60 $ 112.53 $ 110.28 $ 96.31 $ 100.65 $ 114.29
 
ADR (Actual) $ 133.39 $ 137.56 $ 136.73 $ 130.30 $ 134.32 $ 139.58
Occupancy (Actual) 74.4 % 81.5 % 80.0 % 73.5 % 74.6 % 81.7 %
RevPAR (Actual) $ 99.27 $ 112.10 $ 109.45 $ 95.76 $ 100.18 $ 114.09
 

Reconciliation to Actual Results

 
Total Revenue (Actual) $ 292,925 $ 331,704 $ 324,926 $ 289,067 $ 298,389 $ 344,714
Revenue from acquisitions (667 ) (1,242 ) (1,343 ) (5,641 ) (8,948 ) (13,866 )
Revenue from dispositions/assets held for sale (7,485 ) (5,533 ) (3,980 ) (885 ) (849 ) (978 )
Lease revenue intangible amortization   (47 )   (47 )   (51 )   (51 )   (66 )   (66 )
Same Store Hotels Total Revenue $ 284,726   $ 324,882   $ 319,552   $ 282,490   $ 288,526   $ 329,804  
 
Adjusted Hotel EBITDA (AHEBITDA) (Actual) $ 105,832 $ 132,138 $ 125,750 $ 101,159 $ 107,091 $ 137,636
AHEBITDA from acquisitions (149 ) (487 ) (424 ) (2,000 ) (3,279 ) (6,134 )
AHEBITDA from dispositions/assets held for sale   (1,873 )   (1,586 )   (953 )   (161 )   (221 )   (285 )
Same Store Hotels AHEBITDA $ 103,810   $ 130,065   $ 124,373   $ 98,998   $ 103,591   $ 131,217  
 

Note:

Same Store Hotels is defined as the 231 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, Adjusted EBITDA
and Adjusted Hotel EBITDA

(Unaudited)

(in thousands)

 

EBITDA is a commonly used measure of performance in many industries and
is defined as net income (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 Company's
indebtedness use EBITDA, as defined in the specific credit agreement, as
a measure of financial compliance.

The Company considers the exclusion of certain additional items from
EBITDA (Adjusted EBITDA) useful, including (i) the exclusion of
transaction and litigation costs (reimbursements), gains or losses from
sales of real estate, and the loss on impairment of depreciable real
estate assets, as these items do not represent ongoing operations, and
(ii) the exclusion of non-cash straight-line ground lease expense, as
this expense does not reflect the underlying performance of the related
hotels.

The Company further excludes actual corporate-level general and
administrative expense for the Company from Adjusted EBITDA (Adjusted
Hotel EBITDA) to isolate property-level operational performance over
which the Company's hotel operators have direct control. The Company
believes Adjusted Hotel EBITDA provides useful supplemental information
to investors regarding operating performance and is used by management
to measure the performance of the Company's hotels and effectiveness of
the operators of the hotels.

The following table reconciles the Company's GAAP net income (loss) to
EBITDA, Adjusted EBITDA and Adjusted Hotel EBITDA on a quarterly basis
from September 30, 2016 through June 30, 2018.

 
    Three Months Ended
9/30/2016     12/31/2016     3/31/2017     6/30/2017     9/30/2017     12/31/2017     3/31/2018     6/30/2018
Net income (loss) $ 13,694 $ 41,554 $ 34,365 $ 87,606 $ 62,824 $ (2,303 ) $ 42,182 $ 67,630
Depreciation 37,343 43,512 43,767 43,893 44,110 44,729 44,840 45,743
Amortization of favorable and unfavorable leases, net 132 161 165 168 165 165 206 148
Interest and other expense, net 10,156 11,507 11,717 11,849 12,024 11,753 11,919 13,210
Income tax (benefit) expense   (7 )   (185 )   250   259     203   135     163   151
EBITDA 61,318 96,549 90,264 143,775 119,326 54,479 99,310 126,882
Transaction and litigation costs (reimbursements) 36,452 (2,872 ) - (2,586 ) - - - -
(Gain) Loss on sale of real estate - 153 - (16,140 ) 157 (312 ) - -
Loss on impairment of depreciable real estate assets 5,471 - 7,875 - - 38,000 - 3,135
Non-cash straight-line ground lease expense   843     940     939   938     917   906     904   898
Adjusted EBITDA $ 104,084   $ 94,770   $ 99,078 $ 125,987   $ 120,400 $ 93,073   $ 100,214 $ 130,915
General and administrative expense   2,623     4,521     6,754   6,151     5,350   8,086     6,877   6,721
Adjusted Hotel EBITDA $ 106,707   $ 99,291   $ 105,832 $ 132,138   $ 125,750 $ 101,159   $ 107,091 $ 137,636
 
 

Apple Hospitality REIT, Inc.

Reconciliation of Net Income to FFO and MFFO

(Unaudited)

(in thousands)

 

The Company calculates and presents FFO in accordance with standards
established by the National Association of Real Estate Investment Trusts
("Nareit"), which defines FFO as net income (loss) (computed in
accordance with GAAP), excluding gains or losses from sales of real
estate, 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 partnerships and joint ventures. Historical cost
accounting for real estate assets implicitly assumes that the value of
real estate assets diminishes predictably over time. Since real estate
values instead have historically risen or fallen with market conditions,
most real estate industry investors consider FFO to be helpful in
evaluating a real estate company's operations. The Company further
believes that by excluding the effects of these items, FFO is useful to
investors in comparing its operating performance between periods and
between REITs that report FFO using the Nareit definition. FFO as
presented by the Company is applicable only to its common shareholders,
but does not represent an amount that accrues directly to common
shareholders.

The Company further adjusts FFO (MFFO) for certain additional items
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 presents MFFO when evaluating its
performance because it believes that it provides further useful
supplemental information to investors regarding its ongoing operating
performance.

The following table reconciles the Company's GAAP net income to FFO and
MFFO for the three and six months ended June 30, 2018 and 2017.

       

Three Months Ended
June 30,

Six Months Ended
June 30,

2018     2017 2018     2017
Net income $ 67,630 $ 87,606 $ 109,812 $ 121,971
Depreciation of real estate owned 45,502 43,664 90,112 87,201
Gain on sale of real estate - (16,140 ) - (16,140 )
Loss on impairment of depreciable real estate assets 3,135 - 3,135 7,875
Amortization of favorable and unfavorable leases, net   148   168     354   333  
Funds from operations 116,415 115,298 203,413 201,240
Transaction and litigation costs (reimbursements) - (2,586 ) - (2,586 )
Non-cash straight-line ground lease expense   898   938     1,802   1,877  
Modified funds from operations $ 117,313 $ 113,650   $ 205,215 $ 200,531  
 
 

Apple Hospitality REIT, Inc.

2018 Guidance Reconciliation of Net Income to EBITDA and
Adjusted EBITDA

(Unaudited)

(in thousands)

 

The guidance of net income, EBITDA and Adjusted EBITDA 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, 2017.

The following table reconciles the Company's GAAP net income guidance to
EBITDA and Adjusted EBITDA guidance for the year ending December 31,
2018.

   
Year Ending December 31, 2018
Low-End     High-End
Net income $ 193,065 $ 216,665
Depreciation 184,000

 

182,000
Amortization of favorable and unfavorable leases, net 650 650
Interest and other expense, net 52,000 50,000
Income tax expense   600   1,000
EBITDA 430,315 450,315
Loss on impairment of depreciable real estate assets 3,135 3,135
Non-cash straight-line ground lease expense   3,550   3,550
Adjusted EBITDA $ 437,000 $ 457,000
 
 
Apple Hospitality REIT, Inc.
Debt Summary
(Unaudited)
($ in thousands)
June 30, 2018
 
   

July 1 -
December 31,
2018

    2019     2020     2021     2022     Thereafter     Total     Fair Market Value
Total debt:
Maturities (1) $ 6,595 $ 252,205 $ 453,349 $ 97,586 $ 109,252 $ 454,780 $ 1,373,767 $ 1,363,907
Average interest rates (2) 3.7 % 3.7 % 3.8 % 4.0 % 3.9 % 3.8 %
 
Variable rate debt:
Maturities (1) $ - $ 218,400 $ 425,000 $ 50,000 $ - $ 185,000 $ 878,400 $ 880,352
Average interest rates (2) 3.3 % 3.3 % 3.2 % 3.3 % 3.4 % 3.4 %
 
Fixed rate debt:
Maturities $ 6,595 $ 33,805 $ 28,349 $ 47,586 $ 109,252 $ 269,780 $ 495,367 $ 483,555
Average interest rates 4.5 % 4.4 % 4.4 % 4.4 % 4.2 % 4.1 %
 
________

(1)

 

In July and August 2018, the Company amended and restated two of
its credit facilities, extending the maturity dates of the
variable rate debt reflected in 2019, 2020 and 2021 to 2022 and
beyond and reducing the average interest rates on those facilities
by approximately 15 basis points as of the respective closing
dates.

(2)

The average interest rate gives effect to interest rate swaps, as
applicable.

 

Note:

See further information on the Company's indebtedness in the
Company's Quarterly Report on Form 10-Q for the quarter ended June
30, 2018.

 
 
Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics Top 20 Markets
Three Months ended June 30
(Unaudited)
 
Top 20 Markets           Occupancy     ADR     RevPAR    

% of Adjusted
Hotel EBITDA

    # of Hotels     Q2 2018     Q2 2017     % Change     Q2 2018     Q2 2017     % Change     Q2 2018     Q2 2017     % Change     Q2 2018
Top 20 Markets                        
Los Angeles/Long Beach, CA 8 90.8% 92.4% (1.8)% $174.46 $171.39 1.8% $158.33 $158.45 (0.1)% 5.5%
San Diego, CA 7 83.6% 84.4% (1.0)% $156.89 $154.63 1.5% $131.12 $130.56 0.4% 4.9%
Nashville, TN 5 89.7% 88.9% 0.9% $180.08 $180.75 (0.4)% $161.50 $160.67 0.5% 4.0%
Chicago, IL 8 82.2% 80.1% 2.6% $134.75 $133.37 1.0% $110.70 $106.79 3.7% 4.0%
Anaheim/Santa Ana, CA 6 86.0% 86.4% (0.5)% $147.93 $146.19 1.2% $127.17 $126.34 0.7% 3.3%
Seattle, WA 3 87.8% 89.7% (2.1)% $208.48 $211.03 (1.2)% $183.10 $189.24 (3.2)% 3.2%
Omaha, NE 4 81.5% 81.0% 0.6% $159.87 $160.33 (0.3)% $130.30 $129.90 0.3% 2.8%
Richmond/Petersburg, VA 4 78.4% 80.2% (2.2)% $149.95 $150.94 (0.7)% $117.60 $121.03 (2.8)% 2.7%
Dallas, TX 9 76.2% 77.8% (2.2)% $122.70 $122.61 0.1% $93.45 $95.44 (2.1)% 2.5%
Washington, DC-MD-VA 4 86.1% 88.1% (2.3)% $152.63 $144.49 5.6% $131.40 $127.35 3.2% 2.3%
Austin, TX 7 81.3% 76.5% 6.3% $126.02 $129.20 (2.5)% $102.46 $98.84 3.7% 2.2%
Phoenix, AZ 9 71.1% 74.3% (4.4)% $109.94 $109.81 0.1% $78.12 $81.59 (4.3)% 2.2%
Norfolk/Virginia Beach, VA 4 87.8% 86.0% 2.1% $154.56 $150.00 3.0% $135.75 $128.98 5.2% 2.1%
North Carolina East 5 83.8% 84.7% (1.0)% $130.12 $130.75 (0.5)% $109.08 $110.76 (1.5)% 2.0%
Denver, CO 3 82.3% 84.6% (2.7)% $160.11 $163.63 (2.2)% $131.84 $138.41 (4.7)% 2.0%
Oklahoma City, OK 4 79.9% 81.2% (1.7)% $143.33 $139.27 2.9% $114.45 $113.08 1.2% 1.8%
Fort Worth/Arlington, TX 5 80.0% 76.9% 4.0% $134.94 $132.48 1.9% $107.93 $101.88 5.9% 1.8%
Alabama South 6 79.2% 77.6% 2.0% $117.41 $112.23 4.6% $92.97 $87.08 6.8% 1.5%
Florida Panhandle 5 83.6% 81.2% 2.9% $125.13 $128.44 (2.6)% $104.55 $104.34 0.2% 1.5%
Alaska 2 86.9%     83.1%     4.6% $184.99     $187.32     (1.2)% $160.75     $155.61     3.3% 1.5%
Top 20 Markets 108 82.3%     82.4%     (0.2)% $146.54     $145.96     0.4% $120.58     $120.32     0.2% 53.8%
                                             
All Other Markets 133 81.3%     81.0%     0.5% $133.53     $130.88     2.0% $108.63     $105.95     2.5% 46.2%
 
                                                                   
Total Portfolio     241     81.8%     81.7%     0.1%     $139.83     $138.22     1.2%     $114.38     $112.88     1.3%     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 Top 20 Markets
Six Months ended June 30
(Unaudited)
 
Top 20 Markets           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 89.9% 90.0% (0.1)% $170.16 $166.17 2.4% $153.01 $149.56 2.3% 5.6%
San Diego, CA 7 81.8% 82.4% (0.7)% $151.94 $152.16 (0.1)% $124.21 $125.31 (0.9)% 5.0%
Phoenix, AZ 9 77.3% 78.1% (1.0)% $137.26 $137.08 0.1% $106.13 $107.05 (0.9)% 4.1%
Nashville, TN 5 85.9% 81.5% 5.3% $170.12 $172.43 (1.3)% $146.06 $140.53 3.9% 3.8%
Anaheim/Santa Ana, CA 6 85.0% 85.8% (0.9)% $147.50 $146.92 0.4% $125.42 $126.06 (0.5)% 3.7%
Chicago, IL 8 73.5% 71.6% 2.8% $126.67 $125.30 1.1% $93.15 $89.65 3.9% 3.1%
Richmond/Petersburg, VA 4 77.3% 76.6% 0.9% $151.07 $150.46 0.4% $116.70 $115.24 1.3% 3.0%
Dallas, TX 9 74.1% 76.7% (3.4)% $123.78 $122.27 1.2% $91.73 $93.77 (2.2)% 3.0%
Seattle, WA 3 84.1% 82.5% 2.0% $186.15 $192.26 (3.2)% $156.53 $158.55 (1.3)% 2.8%
Austin, TX 7 78.3% 76.8% 2.1% $128.58 $131.03 (1.9)% $100.74 $100.57 0.2% 2.5%
Fort Lauderdale, FL 3 91.8% 87.5% 4.9% $161.36 $152.93 5.5% $148.14 $133.88 10.7% 2.2%
Miami/Hialeah, FL 3 92.8% 88.4% 5.0% $162.42 $156.19 4.0% $150.74 $138.02 9.2% 2.0%
Omaha, NE 4 71.0% 74.9% (5.3)% $142.23 $143.43 (0.8)% $100.95 $107.45 (6.1)% 2.0%
Fort Worth/Arlington, TX 5 77.7% 74.7% 4.0% $134.97 $130.90 3.1% $104.92 $97.83 7.3% 2.0%
Oklahoma City, OK 4 76.3% 78.7% (3.0)% $138.26 $136.58 1.2% $105.51 $107.46 (1.8)% 1.8%
Houston, TX 6 67.3% 65.4% 3.0% $125.85 $122.06 3.1% $84.72 $79.78 6.2% 1.8%
Denver, CO 3 75.8% 78.9% (3.9)% $149.20 $152.91 (2.4)% $113.15 $120.71 (6.3)% 1.7%
North Carolina East 5 78.2% 79.5% (1.7)% $117.38 $116.94 0.4% $91.75 $93.01 (1.4)% 1.7%
Washington, DC-MD-VA 4 77.4% 77.2% 0.2% $137.24 $138.30 (0.8)% $106.19 $106.80 (0.6)% 1.7%
Orlando, FL 3 85.1%     89.0%     (4.4)% $134.24     $125.84     6.7% $114.18     $111.97     2.0% 1.7%
Top 20 Markets 106 79.3%     79.2%     0.1% $144.04     $142.83     0.8% $114.29     $113.16     1.0% 55.2%
                                             
All Other Markets 135 77.2%     77.2%     0.0% $130.84     $129.13     1.3% $101.01     $99.68     1.3% 44.8%
 
                                                                   
Total Portfolio     241     78.3%     78.2%     0.1%     $137.39     $135.95     1.1%     $107.52     $106.31     1.1%     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 June 30
(Unaudited)
 
Region           Occupancy     ADR     RevPAR    

% of Adjusted
Hotel EBITDA

    # of Hotels     Q2 2018     Q2 2017     % Change     Q2 2018     Q2 2017     % Change     Q2 2018     Q2 2017     % Change     Q2 2018
STR Region                        
East North Central 15 80.1% 79.7% 0.5% $134.26 $132.80 1.1% $107.58 $105.89 1.6% 6.5%
East South Central 30 83.9% 82.7% 1.5% $135.59 $135.05 0.4% $113.74 $111.64 1.9% 11.0%
Middle Atlantic 12 84.0% 81.9% 2.6% $166.59 $162.61 2.4% $139.96 $133.21 5.1% 4.6%
Mountain 21 76.8% 79.1% (2.9)% $123.87 $124.48 (0.5)% $95.16 $98.47 (3.4)% 7.7%
New England 5 81.6% 82.5% (1.1)% $147.09 $143.60 2.4% $119.98 $118.44 1.3% 2.4%
Pacific 33 87.3% 87.7% (0.6)% $167.87 $165.53 1.4% $146.47 $145.25 0.8% 22.1%
South Atlantic 62 83.4% 83.9% (0.6)% $135.18 $132.67 1.9% $112.80 $111.35 1.3% 25.3%
West North Central 17 81.1% 81.2% (0.2)% $136.33 $136.03 0.2% $110.54 $110.50 0.0% 6.7%
West South Central 46 76.7% 75.0% 2.4% $125.49 $123.92 1.3% $96.30 $92.91 3.6% 13.7%
                                                                   
Total Portfolio     241     81.8%     81.7%     0.1%     $139.83     $138.22     1.2%     $114.38     $112.88     1.3%     100.0%
 

Note: Region categorization is based on STR designation.

 
 
Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Region
Six Months ended June 30
(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 73.0% 72.3% 1.0% $127.13 $126.30 0.7% $92.82 $91.33 1.6% 5.5%
East South Central 30 79.1% 78.3% 1.0% $131.14 $130.93 0.2% $103.69 $102.51 1.1% 10.5%
Middle Atlantic 12 77.5% 75.9% 2.1% $155.35 $153.30 1.3% $120.35 $116.31 3.5% 3.2%
Mountain 21 77.5% 79.5% (2.4)% $132.57 $132.19 0.3% $102.77 $105.03 (2.1)% 9.7%
New England 5 72.0% 71.8% 0.3% $137.20 $136.20 0.7% $98.78 $97.80 1.0% 1.9%
Pacific 33 84.9% 84.8% 0.2% $161.39 $159.92 0.9% $137.08 $135.58 1.1% 22.1%
South Atlantic 62 80.4% 80.4% 0.1% $135.59 $132.79 2.1% $109.08 $106.77 2.2% 26.6%
West North Central 17 73.3% 75.4% (2.8)% $127.36 $127.33 0.0% $93.40 $96.07 (2.8)% 5.4%
West South Central 46 74.5% 73.7% 1.0% $125.87 $124.36 1.2% $93.73 $91.69 2.2% 15.1%
                                                                   
Total Portfolio     241     78.3%     78.2%     0.1%     $137.39     $135.95     1.1%     $107.52     $106.31     1.1%     100.0%
 

Note: Region categorization is based on STR designation.

 
 
Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Chain Scale
Three Months ended June 30
(Unaudited)
 
Chain Scale/Brand           Occupancy     ADR     RevPAR    

% of Adjusted
Hotel EBITDA

    # of Hotels     Q2 2018     Q2 2017     % Change     Q2 2018     Q2 2017     % Change     Q2 2018     Q2 2017     % Change     Q2 2018
Upscale                        
Courtyard 40 80.2% 78.9% 1.8% $143.45 $143.02 0.3% $115.12 $112.77 2.1% 19.8%
Hilton Garden Inn 42 80.7% 80.4% 0.3% $138.68 $137.60 0.8% $111.88 $110.63 1.1% 18.6%
Homewood Suites 34 85.9% 85.4% 0.5% $141.24 $137.37 2.8% $121.30 $117.35 3.4% 12.6%
Residence Inn 34 83.5% 83.2% 0.3% $148.46 $148.23 0.2% $123.93 $123.32 0.5% 15.1%
SpringHill Suites 16 82.6%     82.8%     (0.2)% $128.23     $125.07     2.5% $105.89     $103.53     2.3% 6.6%
Upscale Total 166 82.2%     81.7%     0.7% $141.16     $139.66     1.1% $116.07     $114.08     1.7% 72.7%
 
Upper Midscale
Fairfield Inn/Fairfield Inn & Suites 11 78.8% 81.1% (2.8)% $119.35 $118.97 0.3% $94.08 $96.47 (2.5)% 3.1%
Hampton Inn/Hampton Inn & Suites 40 81.1% 82.3% (1.5)% $137.61 $134.56 2.3% $111.61 $110.76 0.8% 15.2%
Home2 Suites 8 87.0% 85.0% 2.4% $131.50 $132.45 (0.7)% $114.43 $112.55 1.7% 3.4%
TownePlace Suites 11 80.5%     80.5%     0.0% $107.36     $108.71     (1.2)% $86.44     $87.53     (1.2)% 2.8%
Upper Midscale Total 70 81.3%     82.1%     (1.0)% $130.10     $128.35     1.4% $105.79     $105.41     0.4% 24.5%
 
Upper Upscale
Embassy Suites 2 86.2% 88.7% (2.8)% $185.51 $176.62 5.0% $159.96 $156.71 2.1% 1.4%
Marriott 2 67.3% 67.6% (0.5)% $146.36 $149.09 (1.8)% $98.55 $100.85 (2.3)% 1.5%
Renaissance 1 93.8%     93.6%     0.3% $280.03     $267.76     4.6% $262.66     $250.49     4.9% (0.1)%
Upper Upscale Total 5 77.4%     78.2%     (1.0)% $187.71     $183.38     2.4% $145.21     $143.36     1.3% 2.8%
                                                                   
Total Portfolio     241     81.8%     81.7%     0.1%     $139.83     $138.22     1.2%     $114.38     $112.88     1.3%     100.0%
 

Note: Chain scale categorization is based on STR
designation.

 
 
Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Chain Scale
Six Months ended June 30
(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 75.5% 74.8% 1.0% $139.69 $139.61 0.1% $105.48 $104.37 1.1% 19.0%
Hilton Garden Inn 42 76.5% 76.3% 0.3% $136.16 $135.36 0.6% $104.20 $103.32 0.9% 18.5%
Homewood Suites 34 83.1% 82.4% 0.8% $142.45 $138.72 2.7% $118.34 $114.29 3.5% 13.6%
Residence Inn 34 80.8% 80.5% 0.3% $145.53 $144.96 0.4% $117.53 $116.69 0.7% 15.6%
SpringHill Suites 16 77.9%     78.8%     (1.2)% $125.11     $122.59     2.1% $97.41     $96.62     0.8% 6.3%
Upscale Total 166 78.4%     78.1%     0.4% $138.94     $137.61     1.0% $108.90     $107.43     1.4% 73.0%
 
Upper Midscale
Fairfield Inn/Fairfield Inn & Suites 11 78.2% 80.1% (2.4)% $120.06 $120.19 (0.1)% $93.86 $96.24 (2.5)% 3.4%
Hampton Inn/Hampton Inn & Suites 40 77.1% 78.2% (1.4)% $135.68 $132.82 2.2% $104.60 $103.82 0.7% 15.0%
Home2 Suites 8 82.4% 80.6% 2.3% $127.06 $126.95 0.1% $104.74 $102.29 2.4% 3.3%
TownePlace Suites 11 78.7%     78.2%     0.7% $105.97     $106.69     (0.7)% $83.44     $83.45     (0.0)% 2.9%
Upper Midscale Total 70 78.1%     78.7%     (0.8)% $128.14     $126.55     1.3% $100.05     $99.62     0.4% 24.6%
 
Upper Upscale
Embassy Suites 2 85.3% 86.3% (1.2)% $178.83 $169.75 5.3% $152.49 $146.46 4.1% 1.4%
Marriott 2 68.3% 67.6% 0.9% $147.43 $150.21 (1.8)% $100.64 $101.61 (0.9)% 1.8%
Renaissance 1 91.5%     90.1%     1.5% $234.13     $227.78     2.8% $214.13     $205.22     4.3% (0.8)%
Upper Upscale Total 5 77.2%     76.9%     0.4% $175.60     $172.70     1.7% $135.51     $132.76     2.1% 2.4%
                                                                   
Total Portfolio     241     78.3%     78.2%     0.1%     $137.39     $135.95     1.1%     $107.52     $106.31     1.1%     100.0%
 

Note: Chain scale categorization is based on STR
designation.

 
 
Apple Hospitality REIT, Inc.
Comparable Hotels Operating Metrics by Location
Three Months ended June 30
(Unaudited)
 
Location           Occupancy     ADR     RevPAR