Apple Hospitality REIT Results

Apple Hospitality REIT Reports Results of Operations for Fourth Quarter and Full Year 2017

Apple Hospitality REIT

Apple Hospitality REIT, Inc. (NYSE: APLE) yesterday announced results of operations for the fourth quarter and full year of 2017.

     

 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,
              2017     2016     % Change       2017     2016     % Change
                                                   
Net income (loss)     $ (2,303 )     $ 41,554       n/a         $ 182,492       $ 144,652      

26.2%

 

Net income (loss) per share     $ (0.01 )     $ 0.19       n/a         $ 0.82       $ 0.76      

7.9%

 

                                                   
Adjusted EBITDA     $ 93,073       $ 94,770      

(1.8%)

 

      $ 438,538       $ 377,978      

16.0%

 

Comparable Hotels Adjusted Hotel EBITDA     $ 101,386       $ 98,642      

2.8%

 

      $ 469,089       $ 469,646      

(0.1%)

 

Comparable Hotels Adjusted Hotel EBITDA Margin      

34.9%

 

     

35.5%

 

    (60 bps)          

37.8%

 

     

38.7%

 

    (90 bps)  
Modified funds from operations (MFFO)     $ 80,956       $ 83,218      

(2.7%)

 

      $ 389,430       $ 336,602      

15.7%

 

MFFO per share     $ 0.36       $ 0.37      

(2.7%)

 

      $ 1.74       $ 1.76      

(1.1%)

 

                                                   
ADR (Actual)     $ 130.30       $ 127.81      

1.9%

 

      $ 134.61       $ 133.61      

0.7%

 

Occupancy (Actual)      

73.5%

 

     

72.4%

 

   

1.5%

 

       

77.4%

 

     

76.9%

 

   

0.7%

 

RevPAR (Actual)     $ 95.76       $ 92.52      

3.5%

 

      $ 104.13       $ 102.80      

1.3%

 

                                                   
Comparable Hotels ADR     $ 130.28       $ 127.82      

1.9%

 

      $ 134.75       $ 133.45      

1.0%

 

Comparable Hotels Occupancy      

73.5%

 

     

72.4%

 

   

1.5%

 

       

77.5%

 

     

77.0%

 

   

0.6%

 

Comparable Hotels RevPAR     $ 95.78       $ 92.55      

3.5%

 

      $ 104.40       $ 102.80      

1.6%

 

                                                   
Distributions paid     $ 67,201       $ 67,116      

0.1%

 

      $ 267,917       $ 229,056      

17.0%

 

Distributions paid per share     $ 0.30       $ 0.30       -         $ 1.20       $ 1.20       -  
                                                   
Total debt outstanding     $ 1,224,335                                      
Total debt to total capitalization (2)      

21.4%

 

                                   
                                               
(1)   Explanations of and reconciliations to net income (loss) 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 $19.61 on December 31, 2017.
     

Comparable Hotels is defined as the 239 hotels owned by the Company as of December 31, 2017. For hotels acquired during the periods noted, the Company has included, as applicable, results of those hotels for periods prior to the Company's ownership, and for dispositions, results have been excluded for the Company's period of ownership. Results for periods prior to the Company's ownership have not been included in the Company's actual Consolidated Financial Statements and are included only for comparison purposes. Results included for periods prior to the Company's ownership are based on information from the prior owner of each hotel and have not been audited or adjusted.

Justin Knight, President and Chief Executive Officer of Apple Hospitality REIT, commented, “The Company achieved an increase in Comparable Hotels RevPAR of 3.5 percent for the quarter and 1.6 percent for the year, due in part to increased demand in Houston and portions of Florida. Despite a low rate growth environment and ongoing wage pressure driven by low unemployment, we achieved a strong Comparable Hotels Adjusted Hotel EBITDA Margin of 37.8 percent for the year. We are pleased to have completed seven strategic hotel acquisitions in recent months, adding to our portfolio’s geographic diversity and increasing our exposure in strong business and leisure markets. Our results continue to highlight the benefits of our geographically diverse portfolio of rooms-focused Marriott and Hilton branded hotels, complemented by a strong flexible balance sheet, and we are confident this strategy will continue to benefit shareholders over the long term.”

Transactional Activity

Acquisitions

  • On February 2, 2017, Apple Hospitality acquired the newly constructed 124-room Courtyard by Marriott® in Fort Worth, Texas, for a gross purchase price of approximately $18 million.
  • On September 12, 2017, the Company acquired the newly constructed Hilton Garden Inn® and Home2 Suites by Hilton®hotels in Birmingham, Alabama, with a combined total of 210 rooms, for a combined gross purchase price of approximately $38 million.
  • On October 13, 2017, the Company acquired an existing 179-room Residence Inn by Marriott® in Portland, Maine, for a gross purchase price of approximately $56 million.
  • On October 20, 2017, the Company acquired an existing 136-room Residence Inn by Marriott® in the Murray suburb of Salt Lake City, Utah, for a gross purchase price of approximately $26 million.
  • On December 1, 2017, the Company acquired an existing 135-room Home2 Suites by Hilton® in Anchorage, Alaska, for a gross purchase price of approximately $24 million.
  • On February 5, 2018, the Company acquired an existing 119-room Hampton Inn & Suites by Hilton® in Atlanta, Georgia, and an existing 144-room Hampton Inn & Suites by Hilton® in Memphis, Tennessee, for a combined gross purchase price of $63 million.

Dispositions

  • On April 20, 2017, the Company completed the sale of the 224-room Hilton® in Dallas, Texas, for a gross sales price of approximately $56 million, including debt assumed by the buyer of approximately $27 million. As a result of the sale, the Company recognized a gain of approximately $16 million in the second quarter of 2017.
  • On October 5, 2017, the Company completed the sale of the 316-room Marriott® in Fairfax, Virginia, for a gross sales price of approximately $42 million. As a result of the sale, the Company recognized a gain of approximately $0.3 million in the fourth quarter of 2017.

Merger with Apple REIT Ten, Inc.

Effective September 1, 2016, Apple Hospitality completed its merger with Apple REIT Ten, Inc. (“Apple Ten”). The merger added 56 Marriott® and Hilton® branded primarily select-service and extended-stay hotels with 7,209 guest rooms to the Company’s portfolio. As consideration in the merger, the Company issued approximately 49 million common shares and paid approximately $94 million to the Apple Ten shareholders, and assumed approximately $257 million of debt.

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 year ended December 31, 2017, the Company invested approximately $69 million in capital expenditures. The Company plans to continue to reinvest in its hotels and anticipates investing $70 million to $80 million in capital improvements during 2018, which includes various scheduled renovation projects for approximately 30 to 35 properties.

Balance Sheet and Capital Markets

As of December 31, 2017, Apple Hospitality had approximately $1.2 billion of total outstanding indebtedness with a current combined weighted-average interest rate of approximately 3.6 percent for 2018. Excluding unamortized debt issuance costs and fair value adjustments, the Company’s total outstanding indebtedness is comprised of approximately $457 million in property-level debt secured by 29 hotels and $767 million outstanding on its unsecured credit facilities. Apple Hospitality’s undrawn capacity on its unsecured credit facilities at December 31, 2017, was approximately $433 million. The Company’s total debt to total capitalization at December 31, 2017, was approximately 21 percent, which provides Apple Hospitality with financial flexibility to fund capital requirements and pursue opportunities in the marketplace.

During the fourth quarter of 2017, the Company sold approximately 6.9 million common shares under its at-the-market offering program at a weighted-average market sales price of approximately $19.55 per common share and received aggregate gross proceeds of approximately $135.1 million and proceeds net of offering costs of approximately $132.9 million. The Company used the proceeds from the sale of these shares to pay down borrowings on its revolving credit facility, providing additional capacity for strategic growth while maintaining the Company’s strong balance sheet.

Renaissance® New York Hotel 57

The fourth quarter of 2017 includes a $38 million non-cash impairment charge related to the Company’s Renaissance® New York Hotel 57, as a result of declines in the hotel’s current and projected cash flows. The hotel has been and is expected to be impacted by a combination of: declines in existing and forecasted hotel market conditions in New York City; new supply in the market; and the loss of retail tenants and the extended period of time and incremental costs it has taken and is anticipated to take to re-lease the available retail space.

Shareholder Distributions

Apple Hospitality paid distributions of $0.30 per common share during the three-month period ended December 31, 2017, and $1.20 per common share for the year ended December 31, 2017. Based on the Company’s common share closing price of $18.16 on February 20, 2018, the annual distribution represents an annual yield of approximately 6.6 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   $197 Million     $221 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.
     

About Apple Hospitality REIT, Inc.

Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust (REIT) that owns one of the largest portfolios of upscale, select-service hotels in the United States. The Company’s highly diversified portfolio consists of 241 hotels with more than 30,500 guest rooms located in 88 markets throughout 34 states. The Company’s hotels are franchised with industry leading brands, and the Company’s portfolio includes 117 Marriott® branded hotels and 124 Hilton® branded hotels.

                   
Apple Hospitality REIT, Inc.
Consolidated Balance Sheets
(in thousands, except share data)
                   
                   
          As of December 31,
          2017       2016
                   
Assets                

Investment in real estate, net of accumulated depreciation of $731,284 and $557,597, respectively

      $ 4,793,159         $ 4,823,489  
Assets held for sale         -           39,000  
Restricted cash-furniture, fixtures and other escrows         29,791           29,425  
Due from third party managers, net         31,457           31,460  
Other assets, net         47,931           56,509  
Total Assets       $ 4,902,338         $ 4,979,883  
                   
Liabilities                
Revolving credit facility       $ 106,900         $ 270,000  
Term loans         656,279           570,934  
Mortgage debt         459,017           497,029  
Accounts payable and other liabilities         109,057           124,856  
Total Liabilities         1,331,253           1,462,819  
                   
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 229,961,548 and 222,938,648 shares, respectively

        4,588,188           4,453,205  
Accumulated other comprehensive income         9,778           4,589  
Distributions greater than net income         (1,026,881 )         (940,730 )
Total Shareholders' Equity         3,571,085           3,517,064  
                   
Total Liabilities and Shareholders' Equity       $ 4,902,338         $ 4,979,883  
                         

Note:

The Consolidated Balance Sheets and corresponding footnotes can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

                               
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,
          2017     2016       2017     2016
Revenues:                              
Room         $ 266,013       $ 257,360         $ 1,143,987       $ 956,119  
Other           23,054         25,071           94,635         84,906  
Total revenue           289,067         282,431           1,238,622         1,041,025  
                               
Expenses:                              
Operating           75,282         75,062           310,756         262,432  
Hotel administrative           24,850         23,178           99,745         81,099  
Sales and marketing           25,010         23,419           100,877         82,663  
Utilities           9,927         9,723           41,909         35,585  
Repair and maintenance           12,069         12,082           48,463         41,249  
Franchise fees           12,319         12,013           52,930         44,225  
Management fees           9,650         9,397           42,722         35,586  
Property taxes, insurance and other           17,045         16,545           69,391         56,860  
Ground lease           2,827         2,822           11,313         10,409  
General and administrative           8,086         4,521           26,341         17,032  
Transaction and litigation costs (reimbursements)         -         (2,872 )         (2,586 )       34,989  
Loss on impairment of depreciable real estate assets         38,000         -           45,875         5,471  
Depreciation           44,729         43,512           176,499         148,163  
Total expenses           279,794         229,402           1,024,235         855,763  
                               
Operating income           9,273         53,029           214,387         185,262  
                               
Interest and other expense, net           (11,753 )       (11,507 )         (47,343 )       (40,026 )
Gain (loss) on sale of real estate           312         (153 )         16,295         (153 )
                               
Income (loss) before income taxes           (2,168 )       41,369           183,339         145,083  
                               
Income tax benefit (expense)           (135 )       185           (847 )       (431 )
                               
Net income (loss)         $ (2,303 )     $ 41,554         $ 182,492       $ 144,652  
                               
Other comprehensive income:                              
Interest rate derivatives           4,560         14,580           5,189         6,646  
                               
Comprehensive income         $ 2,257       $ 56,134         $ 187,681       $ 151,298  
                               
Basic and diluted net income (loss) per common share       $ (0.01 )     $ 0.19         $ 0.82       $ 0.76  
                               
Weighted average common shares outstanding - basic and diluted         224,935         223,177           223,526         190,856  
                                             

Note:

The Consolidated Statements of Operations and Comprehensive Income and corresponding footnotes can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

 
 
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,
              2017     2016     % Change     2017     2016     % Change
                                               
Room revenue       $ 267,180     $ 255,297     4.7%       $ 1,149,409     $ 1,123,918     2.3%
Other revenue         23,023       22,852     0.7%         91,779       91,201     0.6%
Total revenue         290,203       278,149     4.3%         1,241,188       1,215,119     2.1%
                                               
Total operating expenses         188,817       179,507     5.2%         772,099       745,473     3.6%
                                               
Adjusted Hotel EBITDA       $ 101,386     $ 98,642     2.8%       $ 469,089     $ 469,646     (0.1%)
Adjusted Hotel EBITDA Margin %         34.9%       35.5%     (60 bps)         37.8%       38.7%     (90 bps)
                                               
                                               
ADR (Comparable Hotels)       $ 130.28     $ 127.82     1.9%       $ 134.75     $ 133.45     1.0%
Occupancy (Comparable Hotels)         73.5%       72.4%     1.5%         77.5%       77.0%     0.6%
RevPAR (Comparable Hotels)       $ 95.78     $ 92.55     3.5%       $ 104.40     $ 102.80     1.6%
                                               
ADR (Actual)       $ 130.30     $ 127.81     1.9%       $ 134.61     $ 133.61     0.7%
Occupancy (Actual)         73.5%       72.4%     1.5%         77.4%       76.9%     0.7%
RevPAR (Actual)       $ 95.76     $ 92.52     3.5%       $ 104.13     $ 102.80     1.3%
                                               

Reconciliation to Actual Results

                                       
                                               
Total Revenue (Actual)       $ 289,067     $ 282,431             $ 1,238,622     $ 1,041,025      
Revenue from acquisitions prior to ownership         1,334       4,007               17,157       209,376      
Revenue from dispositions         (147)       (8,242)               (14,395)       (35,238)      
Lease revenue intangible amortization         (51)       (47)               (196)       (44)      
Comparable Hotels Total Revenue       $ 290,203     $ 278,149             $ 1,241,188     $ 1,215,119      
                                               
Adjusted Hotel EBITDA (AHEBITDA) (Actual)       $ 101,159     $ 99,291             $ 464,879     $ 395,010      
AHEBITDA from acquisitions prior to ownership         265       1,517               7,890       83,822      
AHEBITDA from dispositions         (38)       (2,166)               (3,680)       (9,186)      
Comparable Hotels AHEBITDA       $ 101,386     $ 98,642             $ 469,089     $ 469,646      
                                                 

Note:

Comparable Hotels is defined as the 239 hotels owned by the Company as of December 31, 2017. 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
              3/31/2016     6/30/2016     9/30/2016     12/31/2016     3/31/2017     6/30/2017     9/30/2017     12/31/2017
                                                         
Room revenue       $ 263,303     $ 304,499     $ 300,819     $ 255,297     $ 267,744     $ 307,545     $ 306,940     $ 267,180
Other revenue         21,592       23,793       22,964       22,852       21,911       24,672       22,173       23,023
Total revenue         284,895       328,292       323,783       278,149       289,655       332,217       329,113       290,203
                                                         
Total operating expenses         177,877       191,483       196,606       179,507       184,470       198,887       199,925       188,817
                                                         
Adjusted Hotel EBITDA       $ 107,018     $ 136,809     $ 127,177     $ 98,642     $ 105,185     $ 133,330     $ 129,188     $ 101,386
Adjusted Hotel EBITDA Margin %         37.6%       41.7%       39.3%       35.5%       36.3%       40.1%       39.3%       34.9%
                                                         
                                                         
ADR (Comparable Hotels)       $ 132.51     $ 137.15     $ 135.67     $ 127.82     $ 132.86     $ 137.61     $ 137.72     $ 130.28
Occupancy (Comparable Hotels)         73.5%       81.8%       80.4%       72.4%       74.5%       81.6%       80.3%       73.5%
RevPAR (Comparable Hotels)       $ 97.42     $ 112.20     $ 109.06     $ 92.55     $ 98.95     $ 112.24     $ 110.64     $ 95.78
                                                         
ADR (Actual)       $ 133.16     $ 138.16     $ 136.04     $ 127.81     $ 133.39     $ 137.56     $ 136.73     $ 130.30
Occupancy (Actual)         74.1%       82.2%       80.2%       72.4%       74.4%       81.5%       80.0%       73.5%
RevPAR (Actual)       $ 98.66     $ 113.59     $ 109.07     $ 92.52     $ 99.27     $ 112.10     $ 109.45     $ 95.76
                                                         

Reconciliation to Actual Results

                                                 
                                                         
Total Revenue (Actual)       $ 224,487     $ 257,636     $ 276,471     $ 282,431     $ 292,925     $ 331,704     $ 324,926     $ 289,067
Revenue from acquisitions prior to ownership         68,380       80,701       56,288       4,007       3,464       5,104       7,255       1,334
Revenue from dispositions         (8,069)       (9,998)       (8,929)       (8,242)       (6,687)       (4,544)       (3,017)       (147)

Lease revenue intangible amortization

        97       (47)       (47)       (47)       (47)       (47)       (51)       (51)
Comparable Hotels Total Revenue       $ 284,895     $ 328,292     $ 323,783     $ 278,149     $ 289,655     $ 332,217     $ 329,113     $ 290,203
                                                         
Adjusted Hotel EBITDA (AHEBITDA) (Actual)       $ 83,438     $ 105,574     $ 106,707     $ 99,291     $ 105,832     $ 132,138     $ 125,750     $ 101,159
AHEBITDA from acquisitions prior to ownership         25,312       34,230       22,763       1,517       1,060       2,471       4,094       265
AHEBITDA from dispositions         (1,732)       (2,995)       (2,293)       (2,166)       (1,707)       (1,279)       (656)       (38)
Comparable Hotels AHEBITDA       $ 107,018     $ 136,809     $ 127,177     $ 98,642     $ 105,185     $ 133,330     $ 129,188     $ 101,386
                                                   

Note:

Comparable Hotels is defined as the 239 hotels owned by the Company as of December 31, 2017. 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,
                2017     2016     % Change       2017     2016     % Change
                                                 
Room revenue       $ 199,219     $ 193,850     2.8%       $ 864,530     $ 856,834     0.9%
Other revenue         17,998       18,361     (2.0%)         71,690       72,150     (0.6%)
Total revenue         217,217       212,211     2.4%         936,220       928,984     0.8%
                                                 
Total operating expenses         142,317       137,389     3.6%         586,496       572,601     2.4%
                                                 
Adjusted Hotel EBITDA       $ 74,900     $ 74,822     0.1%       $ 349,724     $ 356,383     (1.9%)
Adjusted Hotel EBITDA Margin %         34.5%       35.3%     (80 bps)         37.4%       38.4%    

(100 bps)

                                                 
                                                 
ADR (Same Store Hotels)       $ 130.96     $ 128.69     1.8%       $ 135.63     $ 134.34     1.0%
Occupancy (Same Store Hotels)         73.4%       72.7%     1.0%         77.6%       77.4%     0.3%
RevPAR (Same Store Hotels)       $ 96.16     $ 93.60     2.7%       $ 105.19     $ 104.00     1.1%
                                                 
ADR (Actual)       $ 130.30     $ 127.81     1.9%       $ 134.61     $ 133.61     0.7%
Occupancy (Actual)         73.5%       72.4%     1.5%         77.4%       76.9%     0.7%
RevPAR (Actual)       $ 95.76     $ 92.52     3.5%       $ 104.13     $ 102.80     1.3%
                                                 

Reconciliation to Actual Results

                                       
                                                 
Total Revenue (Actual)       $ 289,067     $ 282,431             $ 1,238,622     $ 1,041,025      
Revenue from acquisitions         (71,652)       (61,931)               (287,811)       (85,811)      
Revenue from dispositions         (147)       (8,242)               (14,395)       (26,186)      
Lease revenue intangible amortization         (51)       (47)               (196)       (44)      
Same Store Hotels Total Revenue       $ 217,217     $ 212,211             $ 936,220     $ 928,984      
                                                 
Adjusted Hotel EBITDA (AHEBITDA) (Actual)       $ 101,159     $ 99,291             $ 464,879     $ 395,010      
AHEBITDA from acquisitions         (26,221)       (22,303)               (111,475)       (31,793)      
AHEBITDA from dispositions         (38)       (2,166)               (3,680)       (6,834)      
Same Store Hotels AHEBITDA       $ 74,900     $ 74,822             $ 349,724     $ 356,383      
                                                 

Note:

Same Store Hotels is defined as the 177 hotels owned by the Company as of January 1, 2016 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
              3/31/2016     6/30/2016     9/30/2016     12/31/2016     3/31/2017     6/30/2017     9/30/2017     12/31/2017
                                                         
Room revenue       $ 202,285     $ 232,836     $ 227,863     $ 193,850     $ 202,007     $ 232,485     $ 230,819     $ 199,219
Other revenue         17,156       18,737       17,896       18,361       17,243       19,380       17,069       17,998
Total revenue             219,441       251,573       245,759       212,211       219,250       251,865       247,888       217,217
                                                         
Total operating expenses         137,197       147,679       150,336       137,389       140,244       151,866       152,069       142,317
                                                         
Adjusted Hotel EBITDA       $ 82,244     $ 103,894     $ 95,423     $ 74,822     $ 79,006     $ 99,999     $ 95,819     $ 74,900
Adjusted Hotel EBITDA Margin %         37.5%       41.3%       38.8%       35.3%       36.0%       39.7%       38.7%       34.5%
                                                         
                                                         
ADR (Same Store Hotels)       $ 133.16     $ 138.23     $ 136.60     $ 128.69     $ 133.43     $ 138.65     $ 138.86     $ 130.96
Occupancy (Same Store Hotels)         74.2%       82.2%       80.5%       72.7%       74.7%       81.8%       80.2%       73.4%
RevPAR (Same Store Hotels)       $ 98.75     $ 113.66     $ 110.02     $ 93.60     $ 99.70     $ 113.45     $ 111.42     $ 96.16
                                                         
ADR (Actual)       $ 133.16     $ 138.16     $ 136.04     $ 127.81     $ 133.39     $ 137.56     $ 136.73     $ 130.30
Occupancy (Actual)         74.1%       82.2%       80.2%       72.4%       74.4%       81.5%       80.0%       73.5%
RevPAR (Actual)       $ 98.66     $ 113.59     $ 109.07     $ 92.52     $ 99.27     $ 112.10     $ 109.45     $ 95.76
                                                         

Reconciliation to Actual Results

                                                 
                                                         
Total Revenue (Actual)       $ 224,487     $ 257,636     $ 276,471     $ 282,431     $ 292,925     $ 331,704     $ 324,926     $ 289,067
Revenue from acquisitions         -       -       (23,880)       (61,931)       (66,941)       (75,248)       (73,970)       (71,652)
Revenue from dispositions         (5,143)       (6,016)       (6,785)       (8,242)       (6,687)       (4,544)       (3,017)       (147)

Lease revenue intangible amortization

        97       (47)       (47)       (47)       (47)       (47)       (51)       (51)
Same Store Hotels Total Revenue       $ 219,441     $ 251,573     $ 245,759     $ 212,211     $ 219,250     $ 251,865     $ 247,888     $ 217,217
                                                         
Adjusted Hotel EBITDA (AHEBITDA) (Actual)       $ 83,438     $ 105,574     $ 106,707     $ 99,291     $ 105,832     $ 132,138     $ 125,750     $ 101,159
AHEBITDA from acquisitions         -       -       (9,490)       (22,303)       (25,119)       (30,860)       (29,275)       (26,221)
AHEBITDA from dispositions         (1,194)       (1,680)       (1,794)       (2,166)       (1,707)       (1,279)       (656)       (38)
Same Store Hotels AHEBITDA       $ 82,244     $ 103,894     $ 95,423     $ 74,822     $ 79,006     $ 99,999     $ 95,819     $ 74,900
                                                                   

Note:

Same Store Hotels is defined as the 177 hotels owned by the Company as of January 1, 2016 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 or inclusion 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 March 31, 2016 through December 31, 2017.

 
          Three Months Ended
          3/31/2016       6/30/2016       9/30/2016       12/31/2016       3/31/2017       6/30/2017     9/30/2017       12/31/2017
Net income (loss)       $ 34,686       $ 54,718       $ 13,694       $ 41,554       $ 34,365       $ 87,606       $ 62,824       $ (2,303 )
Depreciation         33,484         33,824         37,343         43,512         43,767         43,893         44,110         44,729  
Amortization of favorable and unfavorable leases, net         262         119         132         161         165         168         165         165  
Interest and other expense, net         8,803         9,560         10,156         11,507         11,717         11,849         12,024         11,753  
Income tax (benefit) expense         263         360         (7 )       (185 )       250         259         203         135  
EBITDA         77,498         98,581         61,318         96,549         90,264         143,775         119,326         54,479  
Transaction and litigation costs (reimbursements)         293         1,116         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  
Non-cash straight-line ground lease expense         819         817         843         940         939         938         917         906  
Adjusted EBITDA       $ 78,610       $ 100,514       $ 104,084       $ 94,770       $ 99,078       $ 125,987       $ 120,400       $ 93,073  
General and administrative expense         4,828         5,060         2,623         4,521         6,754         6,151         5,350         8,086  
Adjusted Hotel EBITDA       $ 83,438       $ 105,574       $ 106,707       $ 99,291       $ 105,832       $ 132,138       $ 125,750       $ 101,159  
                                                                                   

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       $ 197,375     $ 220,975
Depreciation         183,000       181,000
Amortization of favorable and unfavorable leases, net         600       600
Interest and other expense, net         51,500       49,500
Income tax expense         800       1,200
EBITDA         433,275       453,275
Non-cash straight-line ground lease expense         3,725       3,725
Adjusted EBITDA       $ 437,000     $ 457,000
                   

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 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 that are not in Nareit’s definition of FFO, 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 (loss) to FFO and MFFO for the three months and years ended December 31, 2017 and 2016.

                         
         

Three Months Ended

December 31,

   

Years Ended

December 31,

          2017   2016     2017   2016
Net income (loss)       $ (2,303 )   $ 41,554       $ 182,492     $ 144,652
Depreciation of real estate owned         44,500       43,282         175,581       147,244
(Gain) loss on sale of real estate         (312 )     153         (16,295 )     153
Loss on impairment of depreciable real estate assets         38,000       -         45,875       5,471
Amortization of favorable and unfavorable leases, net         165       161         663       674
Funds from operations         80,050       85,150         388,316       298,194
Transaction and litigation costs (reimbursements)         -       (2,872 )       (2,586 )     34,989
Non-cash straight-line ground lease expense         906       940         3,700       3,419
Modified funds from operations       $ 80,956     $ 83,218       $ 389,430     $ 336,602
                                     
 

Apple Hospitality REIT, Inc.

Debt Summary

(Unaudited)

($ in thousands)

December 31, 2017

 
 
        2018     2019     2020     2021     2020     Thereafter     Total     Fair Market Value
Total debt:                                                  
Maturities       $ 11,964     $ 139,622     $ 452,223     $ 96,415     $ 108,034     $ 416,077     $ 1,224,335     $ 1,221,312
Average interest rates         3.6%       3.6%       3.8%       4.0%       3.9%       3.8%            
                                                   
Variable rate debt:                                                  
Maturities       $ -     $ 106,900     $ 425,000     $ 50,000     $ -     $ 185,000     $ 766,900     $ 768,745
Average interest rates (1)         3.1%       3.1%       3.2%       3.3%       3.4%       3.4%            
                                                   
Fixed rate debt:                                                  
Maturities       $ 11,964     $ 32,722     $ 27,223     $ 46,415     $ 108,034     $ 231,077     $ 457,435     $ 452,567
Average interest rates         4.5%       4.5%       4.5%       4.4%       4.2%       4.1%            

________

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

Note:

See further information on the Company’s indebtedness in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

                                             
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 2017   Q4 2016   % Change   Q4 2017   Q4 2016   % Change   Q4 2017   Q4 2016   % Change   Q4 2017
Top 20 Markets                                            
Los Angeles/Long Beach, CA   8   89.0%   85.3%   4.3%   $163.06   $161.27   1.1%   $145.13   $137.62   5.5%   6.9%
Nashville, TN   5   82.2%   75.4%   8.9%   $170.22   $168.19   1.2%   $139.87   $126.86   10.3%   4.4%
San Diego, CA   7   74.6%   74.3%   0.4%   $137.29   $136.82   0.3%   $102.45   $101.69   0.7%   4.2%
Anaheim/Santa Ana, CA   6   85.0%   78.9%   7.7%   $137.98   $135.46   1.9%   $117.27   $106.94   9.7%   4.1%
Chicago, IL   8   69.7%   68.8%   1.4%   $125.06   $124.93   0.1%   $87.15   $85.89   1.5%   3.6%
Dallas, TX   9   71.5%   71.3%   0.4%   $119.69   $117.34   2.0%   $85.62   $83.61   2.4%   3.5%
Richmond/Petersburg, VA   4   68.6%   64.4%   6.5%   $148.99   $147.08   1.3%   $102.19   $94.74   7.9%   3.1%
Phoenix, AZ   8   72.9%   72.3%   0.8%   $113.81   $112.66   1.0%   $82.94   $81.46   1.8%   3.0%
Austin, TX   7   76.9%   73.9%   4.0%   $126.76   $123.75   2.4%   $97.48   $91.50   6.5%   2.9%
Houston, TX   6   71.2%   57.4%   24.0%   $127.36   $111.82   13.9%   $90.70   $64.20   41.3%   2.6%
Seattle, WA   3   75.7%   75.5%   0.4%   $168.73   $168.02   0.4%   $127.79   $126.78   0.8%   2.5%
Miami/Hialeah, FL   3   93.0%   85.5%   8.7%   $154.79   $145.84   6.1%   $143.92   $124.73   15.4%   2.3%
Fort Lauderdale, FL   3   90.8%   80.0%   13.5%   $143.53   $132.92   8.0%   $130.30   $106.28   22.6%   2.2%
Fort Worth/Arlington, TX   5   70.6%   75.1%   (6.0)%   $130.14   $123.57   5.3%   $91.88   $92.79   (1.0)%   1.9%
Denver, CO   3   72.4%   69.3%   4.5%   $147.81   $144.00   2.6%   $106.98   $99.76   7.2%   1.9%
Oklahoma City, OK   4   72.2%   68.6%   5.2%   $126.00   $129.18   (2.5)%   $91.01   $88.66   2.6%   1.8%
Washington, DC-MD-VA   4   76.1%   73.7%   3.3%   $122.54   $125.31   (2.2)%   $93.28   $92.32   1.0%   1.7%
Alabama South   6   65.2%   69.4%   (6.1)%   $114.48   $111.71   2.5%   $74.59   $77.50   (3.8)%   1.4%
Boston, MA   4   70.7%   68.4%   3.3%   $133.11   $128.69   3.4%   $94.09   $88.03   6.9%   1.4%
Idaho   2   70.7%   71.2%   (0.8)%   $123.04   $121.96   0.9%   $86.95   $86.84   0.1%   1.4%
Top 20 Markets   105   75.6%   72.8%   3.9%   $136.29   $133.40   2.2%   $103.01   $97.08   6.1%   56.8%
                                             
All Other Markets                                            
Indiana North   3   68.6%   66.1%   3.8%   $146.94   $144.10   2.0%   $100.86   $95.30   5.8%   1.4%
Kansas City, MO-KS   5   72.5%   75.3%   (3.7)%   $115.90   $116.66   (0.7)%   $84.05   $87.81   (4.3)%   1.3%
Philadelphia, PA-NJ   3   73.0%   66.1%   10.5%   $136.16   $142.32   (4.3)%   $99.41   $94.00   5.7%   1.3%
Orlando, FL   3   75.5%   85.2%   (11.4)%   $114.25   $109.17   4.7%   $86.23   $93.02   (7.3)%   1.3%
North Carolina East   5   67.2%   73.5%   (8.5)%   $104.72   $104.05   0.6%   $70.37   $76.44   (7.9)%   1.2%
Omaha, NE   4   63.4%   64.2%   (1.3)%   $114.21   $117.87   (3.1)%   $72.36   $75.67   (4.4)%   1.2%
Florida Central   3   79.8%   74.3%   7.4%   $136.07   $128.59   5.8%   $108.59   $95.55   13.6%   1.2%
Virginia Area   2   72.5%   80.0%   (9.4)%   $147.44   $140.08   5.3%   $106.89   $112.05   (4.6)%   1.2%
Newark, NJ   2   82.9%   81.6%   1.7%   $152.85   $151.70   0.8%   $126.77   $123.74   2.4%   1.1%
New Orleans, LA   1   78.3%   81.7%   (4.2)%   $184.95   $174.43   6.0%   $144.77   $142.45   1.6%   1.1%
Florida Panhandle   5   66.4%   71.4%   (7.0)%   $107.96   $111.38   (3.1)%   $71.70   $79.52   (9.8)%   1.1%
Maine   1   74.1%   74.5%   (0.5)%   $169.48   $164.99   2.7%   $125.61   $122.95   2.2%   1.0%
San Jose/Santa Cruz, CA   1   84.0%   83.2%   1.0%   $209.10   $196.94   6.2%   $175.66   $163.76   7.3%   1.0%
Melbourne/Titusville, FL   1   91.3%   80.0%   14.1%   $144.57   $126.57   14.2%   $131.97   $101.25   30.3%   1.0%
Arkansas Area   4   61.4%   63.7%   (3.6)%   $119.50   $123.74   (3.4)%   $73.41   $78.88   (6.9)%   1.0%
Knoxville, TN   3   73.3%   72.7%   0.7%   $111.12   $111.85   (0.7)%   $81.41   $81.35   0.1%   0.9%
Alabama North   4   68.8%   68.1%   0.9%   $107.42   $106.28   1.1%   $73.86   $72.42   2.0%   0.9%
Tampa/St Petersburg, FL   2   88.7%   79.0%   12.2%   $123.32   $115.99   6.3%   $109.36   $91.67   19.3%   0.9%
Greensboro/Winston Salem, NC   3   66.3%   69.3%   (4.3)%   $119.54   $120.53   (0.8)%   $79.30   $83.55   (5.1)%   0.9%
Tucson, AZ   3   76.0%   72.5%   4.8%   $98.64   $93.75   5.2%   $74.96   $67.95   10.3%   0.8%
Iowa Area   3   74.7%   76.7%   (2.7)%   $108.67   $107.85   0.8%   $81.13   $82.72   (1.9)%   0.8%
Texas East   4   73.0%   63.8%   14.5%   $100.18   $88.13   13.7%   $73.13   $56.21   30.1%   0.8%
Tennessee Area   3   63.4%   65.9%   (3.8)%   $105.50   $106.45   (0.9)%   $66.93   $70.19   (4.7)%   0.8%
St Louis, MO-IL   2   67.3%   65.1%   3.4%   $129.99   $129.58   0.3%   $87.49   $84.32   3.8%   0.8%
Raleigh/Durham/Chapel Hill, NC   2   76.6%   75.9%   0.9%   $113.10   $110.05   2.8%   $86.63   $83.51   3.7%   0.7%
Birmingham, AL   4   63.7%   68.1%   (6.5)%   $109.34   $103.88   5.3%   $69.68   $70.79   (1.6)%   0.7%
Columbia, SC   2   76.8%   74.4%   3.1%   $116.55   $116.13   0.4%   $89.47   $86.43   3.5%   0.7%
Syracuse, NY   2   67.0%   58.7%   14.0%   $145.58   $163.64   (11.0)%   $97.50   $96.10   1.5%   0.7%
Louisiana South   3   61.9%   71.9%   (13.8)%   $108.39   $113.15   (4.2)%   $67.15   $81.36   (17.5)%   0.7%
Jacksonville, FL   1   90.9%   88.0%   3.3%   $144.69   $143.68   0.7%   $131.58   $126.46   4.0%   0.7%
California South/Central   3   77.0%   81.9%   (6.0)%   $120.80   $114.65   5.4%   $93.02   $93.95   (1.0)%   0.7%
Long Island   1   86.1%   84.3%   2.1%   $134.74   $131.12   2.8%   $116.00   $110.54   4.9%   0.7%
Alaska   2   72.3%   63.3%   14.3%   $138.67   $138.47   0.1%   $100.27   $87.62   14.4%   0.7%
West Palm Beach/Boca Raton, FL   1   89.4%   86.7%   3.1%   $117.10   $123.31   (5.0)%   $104.66   $106.91   (2.1)%   0.6%
Sacramento, CA   1   76.0%   72.4%   4.9%   $150.42   $139.74   7.6%   $114.28   $101.16   13.0%   0.6%
Riverside/San Bernardino, CA   1   86.5%   88.6%   (2.4)%   $163.54   $156.99   4.2%   $141.50   $139.17   1.7%   0.6%
Salt Lake City/Ogden, UT   2   65.3%   72.5%   (9.9)%   $111.86   $105.47   6.1%   $73.02   $76.44   (4.5)%   0.6%
Norfolk/Virginia Beach, VA   4   65.9%   66.3%   (0.5)%   $100.30   $98.60   1.7%   $66.14   $65.35   1.2%   0.6%
Texas West   2   70.5%   80.3%   (12.2)%   $110.31   $110.83   (0.5)%   $77.72   $88.98   (12.7)%   0.6%
Detroit, MI   1   68.0%   65.1%   4.4%   $136.73   $133.85   2.1%   $92.95   $87.14   6.7%   0.6%
Atlanta, GA   1   70.7%   61.8%   14.4%   $157.95   $132.73   19.0%   $111.72   $82.08   36.1%   0.5%
Portland, OR   1   71.2%   65.0%   9.6%   $129.65   $120.07   8.0%   $92.37   $78.06   18.3%   0.4%
Macon/Warner Robins, GA   1   78.5%   75.8%   3.6%   $128.91   $127.96   0.7%   $101.21   $97.00   4.3%   0.4%
Georgia South   3   62.3%   61.1%   1.9%   $92.27   $90.03   2.5%   $57.47   $55.02   4.5%   0.4%
Indianapolis, IN   1   77.9%   72.2%   7.9%   $114.53   $115.86   (1.1)%   $89.25   $83.70   6.6%   0.4%
Bergen/Passaic, NJ   1   75.1%   83.7%   (10.2)%   $141.47   $136.29   3.8%   $106.26   $114.03   (6.8)%   0.4%
Mississippi   2   68.3%   61.6%   10.9%   $106.07   $107.16   (1.0)%   $72.41   $65.98   9.7%   0.4%
Charlotte, NC-SC   2   70.5%   68.6%   2.8%   $101.38   $106.36   (4.7)%   $71.45   $72.95   (2.1)%   0.4%
Ohio Area   1   62.6%   67.4%   (7.1)%   $119.27   $121.29   (1.7)%   $74.71   $81.74   (8.6)%   0.4%
Baltimore, MD   1   67.7%   70.9%   (4.5)%   $126.66   $119.49   6.0%   $85.72   $84.70   1.2%   0.3%
Colorado Springs, CO   1   77.6%   77.6%   (0.0)%   $120.55   $114.62   5.2%   $93.55   $88.96   5.2%   0.3%
Charleston, SC   1   66.9%   74.1%   (9.7)%   $116.80   $117.62   (0.7)%   $78.13   $87.16   (10.4)%   0.3%
Pittsburgh, PA   1   66.2%   64.7%   2.3%   $120.13   $130.58   (8.0)%   $79.50   $84.44   (5.8)%   0.3%
Central New Jersey   1   56.9%   62.4%   (8.9)%   $129.21   $123.33   4.8%   $73.47   $76.98   (4.5)%   0.3%
Savannah, GA   1   78.1%   87.0%   (10.3)%   $123.99   $125.60   (1.3)%   $96.85   $109.33   (11.4)%   0.3%
Minneapolis/St Paul, MN-WI   1   72.4%   65.5%   10.5%   $123.79   $131.67   (6.0)%   $89.59   $86.27   3.9%   0.3%
Memphis, TN-AR-MS   1   72.6%   70.1%   3.5%   $121.47   $122.65   (1.0)%   $88.15   $85.99   2.5%   0.3%
Utah Area   1   66.6%   69.6%   (4.2)%   $110.84   $109.47   1.3%   $73.86   $76.17   (3.0)%   0.2%
Minnesota   1   75.7%   67.9%   11.5%   $107.15   $100.88   6.2%   $81.08   $68.46   18.4%   0.2%
Cincinnati, OH-KY-IN   1   65.2%   60.3%   8.3%   $112.67   $115.68   (2.6)%   $73.51   $69.70   5.5%   0.2%
Mobile, AL   1   70.9%   66.6%   6.5%   $103.78   $102.24   1.5%   $73.63   $68.09   8.1%   0.2%
Sarasota/Bradenton, FL   1   87.4%   86.3%   1.4%   $116.41   $115.53   0.8%   $101.79   $99.65   2.1%   0.2%
Greenville/Spartanburg, SC   1   73.6%   81.1%   (9.3)%   $119.04   $114.96   3.5%   $87.55   $93.27   (6.1)%   0.2%
South Carolina Area   1   63.9%   78.2%   (18.2)%   $112.54   $121.11   (7.1)%   $71.92   $94.67   (24.0)%   0.2%
Chattanooga, TN-GA   1   75.1%   76.2%   (1.4)%   $116.34   $114.96   1.2%   $87.39   $87.58   (0.2)%   0.1%
San Antonio, TX   1   63.9%   69.6%   (8.3)%   $87.38   $90.20   (3.1)%   $55.81   $62.82   (11.2)%   0.1%
Kansas   1   61.6%   57.9%   6.4%   $96.20   $95.67   0.6%   $59.25   $55.41   6.9%   0.1%
New York, NY   1   98.9%   95.7%   3.4%   $289.32   $288.64   0.2%   $286.25   $276.26   3.6%   (0.1)%
All Other Markets   134   71.6%   72.1%   (0.7)%   $124.33   $122.52   1.5%   $89.00   $88.29   0.8%   43.2%
                                             
Total Portfolio   239   73.5%   72.4%   1.5%   $130.28   $127.82   1.9%   $95.78   $92.55   3.5%   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 2017   YTD 2016   % Change   YTD 2017   YTD 2016   % Change   YTD 2017   YTD 2016   % Change   YTD 2017
Top 20 Markets                                            
Los Angeles/Long Beach, CA   8   90.3%   90.2%   0.1%   $168.58   $175.67   (4.0)%   $152.26   $158.51   (3.9)%   6.2%
San Diego, CA   7   81.1%   78.3%   3.6%   $152.72   $148.23   3.0%   $123.83   $116.00   6.7%   5.2%
Nashville, TN   5   83.2%   84.5%   (1.6)%   $171.76   $169.43   1.4%   $142.83   $143.17   (0.2)%   3.9%
Anaheim/Santa Ana, CA   6   86.1%   84.4%   2.0%   $146.27   $143.89   1.7%   $125.99   $121.50   3.7%   3.9%
Chicago, IL   8   73.8%   73.2%   0.8%   $126.79   $128.25   (1.1)%   $93.57   $93.90   (0.3)%   3.7%
Seattle, WA   3   83.3%   82.8%   0.7%   $198.96   $191.73   3.8%   $165.82   $158.66   4.5%   3.2%
Dallas, TX   9   74.7%   77.8%   (4.0)%   $120.69   $120.01   0.6%   $90.13   $93.36   (3.5)%   3.1%
Phoenix, AZ   8   72.8%   72.4%   0.6%   $121.53   $118.72   2.4%   $88.49   $85.89   3.0%   2.9%
Richmond/Petersburg, VA   4   74.3%   70.4%   5.5%   $149.07   $146.09   2.0%   $110.76   $102.88   7.7%   2.9%
Austin, TX   7   76.6%   78.6%   (2.5)%   $126.88   $128.35   (1.1)%   $97.16   $100.85   (3.7)%   2.5%
Denver, CO   3   79.8%   77.6%   2.8%   $154.33   $153.04   0.8%   $123.13   $118.80   3.6%   2.1%
Houston, TX   6   67.4%   61.4%   9.8%   $124.16   $123.11   0.9%   $83.69   $75.59   10.7%   1.9%
Omaha, NE   4   72.4%   74.4%   (2.7)%   $133.92   $136.89   (2.2)%   $97.00   $101.91   (4.8)%   1.9%
Oklahoma City, OK   4   77.4%   77.4%   (0.1)%   $132.50   $136.17   (2.7)%   $102.49   $105.41   (2.8)%   1.8%
North Carolina East   5   77.9%   79.0%   (1.4)%   $119.65   $116.07   3.1%   $93.26   $91.74   1.7%   1.8%
Miami/Hialeah, FL   3   89.3%   88.8%   0.6%   $148.69   $152.46   (2.5)%   $132.77   $135.31   (1.9)%   1.8%
Washington, DC-MD-VA   4   78.8%   78.9%   (0.1)%   $130.47   $130.52   (0.0)%   $102.82   $102.93   (0.1)%   1.7%
Fort Lauderdale, FL   3   87.5%   82.6%   5.9%   $140.34   $137.11   2.4%   $122.79   $113.23   8.4%   1.7%
Fort Worth/Arlington, TX   5   73.1%   79.8%   (8.5)%   $130.12   $123.57   5.3%   $95.07   $98.62   (3.6)%   1.7%
Norfolk/Virginia Beach, VA   4   75.8%   74.2%   2.1%   $141.49   $142.04   (0.4)%   $107.23   $105.39   1.8%   1.7%
Top 20 Markets   106   78.3%   77.9%   0.6%   $141.38   $140.77   0.4%   $110.75   $109.65   1.0%   55.6%
                                             
All Other Markets                                            
Idaho   2   80.0%   79.5%   0.5%   $127.97   $124.69   2.6%   $102.33   $99.19   3.2%   1.6%
Kansas City, MO-KS   5   78.2%   75.2%   3.9%   $119.05   $119.03   0.0%   $93.08   $89.56   3.9%   1.4%
Alabama South   6   72.5%   74.8%   (3.1)%   $112.92   $112.83   0.1%   $81.85   $84.43   (3.1)%   1.4%
Boston, MA   4   74.8%   77.3%   (3.2)%   $133.02   $130.27   2.1%   $99.55   $100.76   (1.2)%   1.4%
Florida Panhandle   5   75.0%   75.7%   (0.9)%   $118.88   $116.91   1.7%   $89.17   $88.49   0.8%   1.4%
Orlando, FL   3   84.1%   87.0%   (3.3)%   $117.47   $112.45   4.5%   $98.83   $97.82   1.0%   1.3%
Alaska   2   78.6%   69.0%   14.0%   $174.58   $182.38   (4.3)%   $137.26   $125.82   9.1%   1.3%
Indiana North   3   74.0%   74.5%   (0.7)%   $139.97   $136.58   2.5%   $103.57   $101.77   1.8%   1.3%
Virginia Area   2   79.7%   82.6%   (3.5)%   $146.19   $142.97   2.3%   $116.49   $118.04   (1.3)%   1.2%
Philadelphia, PA-NJ   3   73.5%   71.4%   3.0%   $138.66   $145.02   (4.4)%   $101.95   $103.48   (1.5)%   1.1%
Arkansas Area   4   68.5%   69.0%   (0.7)%   $122.78   $118.78   3.4%   $84.16   $82.01   2.6%   1.1%
San Jose/Santa Cruz, CA   1   89.3%   87.6%   1.9%   $217.32   $209.16   3.9%   $194.10   $183.33   5.9%   1.0%
Maine   1   76.5%   72.6%   5.4%   $182.64   $182.65   (0.0)%   $139.73   $132.53   5.4%   1.0%
St Louis, MO-IL   2   74.7%   74.4%   0.4%   $142.62   $136.84   4.2%   $106.52   $101.80   4.6%   1.0%
Alabama North   4   76.8%   74.4%   3.2%   $109.37   $106.94   2.3%   $84.00   $79.61   5.5%   1.0%
Florida Central   3   79.1%   78.1%   1.3%   $134.95   $131.88   2.3%   $106.79   $103.04   3.6%   1.0%
Newark, NJ   2   82.7%   83.3%   (0.7)%   $150.67   $151.94   (0.8)%   $124.66   $126.64   (1.6)%   0.9%
Salt Lake City/Ogden, UT   2   77.9%   75.8%   2.8%   $122.04   $114.66   6.4%   $95.03   $86.89   9.4%   0.9%
Tennessee Area   3   67.8%   69.8%   (3.0)%   $112.92   $117.35   (3.8)%   $76.50   $81.94   (6.6)%   0.9%
Knoxville, TN   3   74.3%   72.0%   3.3%   $111.89   $109.51   2.2%   $83.17   $78.84   5.5%   0.8%
Tucson, AZ   3   77.6%   80.8%   (3.9)%   $103.01   $96.40   6.9%   $79.98   $77.85   2.7%   0.8%
Tampa/St Petersburg, FL   2   87.5%   84.4%   3.7%   $127.42   $121.19   5.1%   $111.48   $102.28   9.0%   0.8%
Iowa Area   3   78.1%   76.1%   2.6%   $112.69   $113.51   (0.7)%   $87.98   $86.36   1.9%   0.8%
New Orleans, LA   1   78.8%   80.0%   (1.5)%   $172.21   $169.22   1.8%   $135.69   $135.38   0.2%   0.8%
Melbourne/Titusville, FL   1   89.5%   75.2%   19.0%   $142.89   $123.70   15.5%   $127.94   $93.04   37.5%   0.8%
Greensboro/Winston Salem, NC   3   71.5%   72.4%   (1.3)%   $115.38   $114.13   1.1%   $82.49   $82.67   (0.2)%   0.8%
California South/Central   3   85.6%   84.8%   0.9%   $124.06   $119.57   3.8%   $106.18   $101.41   4.7%   0.8%
Louisiana South   3   68.4%   73.2%   (6.6)%   $108.10   $112.26   (3.7)%   $73.89   $82.18   (10.1)%   0.7%
Columbia, SC   2   80.5%   78.7%   2.2%   $116.43   $113.25   2.8%   $93.70   $89.17   5.1%   0.7%
Syracuse, NY   2   67.9%   73.2%   (7.2)%   $155.35   $169.34   (8.3)%   $105.49   $123.96   (14.9)%   0.7%
Sacramento, CA   1   84.3%   77.6%   8.6%   $150.72   $139.34   8.2%   $127.00   $108.14   17.4%   0.7%
Raleigh/Durham/Chapel Hill, NC   2   77.5%   74.0%   4.8%   $111.06   $108.88   2.0%   $86.09   $80.52   6.9%   0.6%
Long Island   1   83.3%   84.3%   (1.2)%   $145.07   $139.61   3.9%   $120.83   $117.75   2.6%   0.6%
Texas West   2   73.0%   78.5%   (7.0)%   $114.62   $116.56   (1.7)%   $83.64   $91.50   (8.6)%   0.6%
Jacksonville, FL   1   90.4%   85.8%   5.4%   $144.93   $141.67   2.3%   $131.01   $121.50   7.8%   0.6%
Texas East   4   69.3%   69.3%   (0.1)%   $94.25   $89.36   5.5%   $65.27   $61.93   5.4%   0.6%
Riverside/San Bernardino, CA   1   89.3%   92.0%   (3.0)%   $166.52   $152.19   9.4%   $148.63   $140.07   6.1%   0.6%
Detroit, MI   1   73.6%   73.9%   (0.4)%   $140.10   $136.41   2.7%   $103.13   $100.78   2.3%   0.5%
Portland, OR   1   75.8%   73.6%   3.0%   $136.75   $128.62   6.3%   $103.65   $94.69   9.5%   0.5%
West Palm Beach/Boca Raton, FL   1   81.8%   83.6%   (2.1)%   $123.00   $125.27   (1.8)%   $100.66   $104.71   (3.9)%   0.5%
Georgia South   3   69.2%   63.3%   9.3%   $93.92   $89.92   4.4%   $64.99   $56.93   14.2%   0.5%
Birmingham, AL   4   69.2%   72.3%   (4.2)%   $108.29   $103.39   4.7%   $74.96   $74.74   0.3%   0.4%
Mississippi   2   73.7%   67.9%   8.5%   $107.58   $109.29   (1.6)%   $79.32   $74.26   6.8%   0.4%
Charlotte, NC-SC   2   72.2%   76.4%   (5.5)%   $104.29   $109.02   (4.3)%   $75.27   $83.26   (9.6)%   0.4%
Indianapolis, IN   1   83.5%   76.5%   9.2%   $120.48   $118.20   1.9%   $100.61   $90.38   11.3%   0.4%
Bergen/Passaic, NJ   1   80.7%   78.4%   2.9%   $142.67   $139.35   2.4%   $115.15   $109.27   5.4%   0.4%
Central New Jersey   1   70.1%   68.5%   2.4%   $123.84   $126.85   (2.4)%   $86.86   $86.88   (0.0)%   0.4%
Macon/Warner Robins, GA   1   82.2%   82.9%   (0.8)%   $128.04   $124.58   2.8%   $105.27   $103.27   1.9%   0.4%
Colorado Springs, CO   1   82.2%   83.8%   (1.9)%   $134.71   $125.27   7.5%   $110.74   $105.02   5.4%   0.4%
Charleston, SC   1   79.0%   81.8%   (3.4)%   $119.41   $120.38   (0.8)%   $94.37   $98.47   (4.2)%   0.4%
Ohio Area   1   68.3%   70.2%   (2.7)%   $121.97   $124.41   (2.0)%   $83.31   $87.37   (4.6)%   0.4%
South Carolina Area   1   80.2%   79.8%   0.5%   $131.08   $127.93   2.5%   $105.16   $102.12   3.0%   0.3%
Atlanta, GA   1   69.6%   61.7%   12.8%   $144.14   $133.25   8.2%   $100.29   $82.22   22.0%   0.3%
Savannah, GA   1   84.5%   86.3%   (2.1)%   $128.83   $126.54   1.8%   $108.80   $109.18   (0.4)%   0.3%
Utah Area   1   73.4%   73.2%   0.2%   $121.54   $112.97   7.6%   $89.17   $82.75   7.8%   0.3%
Memphis, TN-AR-MS   1   80.1%   82.1%   (2.4)%   $122.28   $120.38   1.6%   $97.93   $98.82   (0.9)%   0.3%
Sarasota/Bradenton, FL   1   90.3%   88.3%   2.3%   $130.12   $129.69   0.3%   $117.49   $114.51   2.6%   0.3%
Minneapolis/St Paul, MN-WI   1   74.8%   73.8%   1.4%   $131.53   $133.73   (1.6)%   $98.42   $98.67   (0.3)%   0.3%
Baltimore, MD   1   71.9%   72.2%   (0.5)%   $124.35   $117.41   5.9%   $89.36   $84.77   5.4%   0.3%
Cincinnati, OH-KY-IN   1   72.0%   71.2%   1.1%   $122.12   $127.27   (4.1)%   $87.87   $90.60   (3.0)%   0.3%
Pittsburgh, PA   1   67.6%   66.8%   1.1%   $119.88   $130.85   (8.4)%   $80.99   $87.45   (7.4)%   0.3%
Minnesota   1   77.0%   72.5%   6.2%   $107.98   $103.24   4.6%   $83.13   $74.85   11.1%   0.2%
Mobile, AL   1   73.1%   70.5%   3.8%   $109.17   $108.32   0.8%   $79.81   $76.31   4.6%   0.2%
Greenville/Spartanburg, SC   1   80.1%   84.7%   (5.5)%   $116.31   $111.75   4.1%   $93.14   $94.70   (1.6)%   0.2%
San Antonio, TX   1   76.3%   80.2%   (4.9)%   $95.69   $97.09   (1.4)%   $73.01   $77.88   (6.3)%   0.2%
Chattanooga, TN-GA   1   81.1%   69.8%   16.3%   $118.81   $113.28   4.9%   $96.41   $79.05   22.0%   0.1%
Kansas   1   66.7%   61.8%   7.8%   $98.04   $99.70   (1.7)%   $65.36   $61.65   6.0%   0.1%
New York, NY   1   94.3%   88.6%   6.5%   $250.34   $263.15   (4.9)%   $236.13   $233.09   1.3%   (0.6)%
All Other Markets   133   76.6%   76.2%   0.6%   $128.16   $126.14   1.6%   $98.22   $96.10   2.2%   44.4%
                                             
Total Portfolio   239   77.5%   77.0%   0.6%   $134.75   $133.45   1.0%   $104.40   $102.80   1.6%   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 2017   Q4 2016   % Change   Q4 2017   Q4 2016   % Change   Q4 2017   Q4 2016   % Change   Q4 2017
STR Region                                            
East North Central   15   69.2%   67.8%   2.1%   $127.54   $127.16   0.3%   $88.31   $86.25   2.4%   6.5%
East South Central   29   71.2%   71.1%   0.2%   $126.89   $125.34   1.2%   $90.39   $89.12   1.4%   9.9%
Middle Atlantic   12   76.5%   74.1%   3.2%   $164.22   $166.18   (1.2)%   $125.62   $123.15   2.0%   4.7%
Mountain   20   72.0%   71.8%   0.4%   $118.67   $115.74   2.5%   $85.49   $83.05   2.9%   8.3%
New England   5   71.6%   70.1%   2.2%   $143.55   $139.40   3.0%   $102.84   $97.72   5.2%   2.4%
Pacific   33   80.4%   77.8%   3.4%   $149.25   $146.75   1.7%   $119.97   $114.10   5.1%   21.5%
South Atlantic   62   74.6%   74.1%   0.6%   $124.61   $120.98   3.0%   $92.98   $89.69   3.7%   25.0%
West North Central   17   69.1%   69.0%   0.1%   $115.55   $116.57   (0.9)%   $79.84   $80.46   (0.8)%   4.8%
West South Central   46   71.0%   69.4%   2.3%   $122.68   $118.84   3.2%   $87.10   $82.47   5.6%   16.9%
                                             
Total Portfolio   239   73.5%   72.4%   1.5%   $130.28   $127.82   1.9%   $95.78   $92.55   3.5%   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 2017   YTD 2016   % Change   YTD 2017   YTD 2016   % Change   YTD 2017   YTD 2016   % Change   YTD 2017
STR Region                                            
East North Central   15   73.9%   73.4%   0.8%   $128.75   $129.20   (0.3)%   $95.20   $94.78   0.4%   6.5%
East South Central   29   76.4%   76.6%   (0.3)%   $127.84   $126.96   0.7%   $97.68   $97.28   0.4%   9.2%
Middle Atlantic   12   77.7%   76.8%   1.1%   $158.25   $162.88   (2.8)%   $122.92   $125.12   (1.8)%   3.9%
Mountain   20   76.5%   76.2%   0.4%   $126.26   $121.93   3.6%   $96.63   $92.91   4.0%   9.0%
New England   5   75.3%   76.0%   (0.9)%   $147.01   $144.14   2.0%   $110.70   $109.58   1.0%   2.4%
Pacific   33   84.8%   82.8%   2.5%   $161.70   $160.28   0.9%   $137.15   $132.66   3.4%   23.2%
South Atlantic   62   78.9%   78.0%   1.2%   $128.92   $126.43   2.0%   $101.68   $98.56   3.2%   24.9%
West North Central   17   75.2%   74.2%   1.4%   $125.01   $125.34   (0.3)%   $94.05   $93.00   1.1%   5.8%
West South Central   46   72.9%   74.3%   (1.9)%   $122.76   $122.04   0.6%   $89.45   $90.62   (1.3)%   15.1%
                                             
Total Portfolio   239   77.5%   77.0%   0.6%   $134.75   $133.45   1.0%   $104.40   $102.80   1.6%   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 2017   Q4 2016   % Change   Q4 2017   Q4 2016   % Change   Q4 2017   Q4 2016   % Change   Q4 2017
Upscale                                            
Courtyard   40   70.1%   68.6%   2.2%   $129.20   $128.33   0.7%   $90.58   $88.04   2.9%   18.1%
Hilton Garden Inn   42   71.4%   71.1%   0.5%   $129.73   $128.65   0.8%   $92.67   $91.48   1.3%   19.1%
Homewood Suites   34   79.6%   77.1%   3.3%   $135.20   $131.14   3.1%   $107.63   $101.05   6.5%   14.0%
Residence Inn   34   77.5%   75.0%   3.3%   $141.84   $137.52   3.1%   $109.98   $103.20   6.6%   17.4%
SpringHill Suites   17   70.5%   73.3%   (3.8)%   $116.74   $114.48   2.0%   $82.25   $83.87   (1.9)%   6.2%
Upscale Total   167   73.6%   72.5%   1.5%   $131.75   $129.27   1.9%   $96.97   $93.76   3.4%   74.8%
                                             
Upper Midscale                                            
Fairfield Inn/Fairfield Inn & Suites   11   76.3%   75.7%   0.8%   $116.40   $114.38   1.8%   $88.81   $86.53   2.6%   4.0%
Hampton Inn/Hampton Inn & Suites   36   72.9%   72.7%   0.3%   $123.28   $121.38   1.6%   $89.92   $88.29   1.8%   12.5%
Home2 Suites   8   72.4%   71.5%   1.2%   $122.82   $122.01   0.7%   $88.88   $87.20   1.9%   2.7%
TownePlace Suites   12   70.6%   69.1%   2.1%   $98.90   $96.98   2.0%   $69.79   $67.06   4.1%   2.7%
Upper Midscale Total   67   73.1%   72.5%   0.7%   $118.44   $116.61   1.6%   $86.54   $84.59   2.3%   21.9%
                                             
Upper Upscale                                            
Embassy Suites   2   83.2%   78.2%   6.3%   $150.98   $139.84   8.0%   $125.55   $109.38   14.8%   1.2%
Marriott   2   62.8%   55.9%   12.4%   $148.11   $145.18   2.0%   $93.04   $81.12   14.7%   2.2%
Renaissance   1   98.9%   95.7%   3.4%   $289.32   $288.64   0.2%   $286.25   $276.26   3.6%   (0.1)%
Upper Upscale Total   5   75.0%   69.3%   8.3%   $182.59   $179.24   1.9%   $136.91   $124.16   10.3%   3.3%
                                             
Total Portfolio   239   73.5%   72.4%   1.5%   $130.28   $127.82   1.9%   $95.78   $92.55   3.5%   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 2017   YTD 2016   % Change   YTD 2017   YTD 2016   % Change   YTD 2017   YTD 2016   % Change   YTD 2017
Upscale                                            
Courtyard   40   74.2%   73.4%   1.1%   $138.95   $139.98   (0.7)%   $103.09   $102.69   0.4%   19.4%
Hilton Garden Inn   42   75.6%   76.6%   (1.3)%   $133.57   $132.35   0.9%   $100.92   $101.35   (0.4)%   18.5%
Homewood Suites   34   82.2%   81.2%   1.2%   $136.43   $134.67   1.3%   $112.18   $109.40   2.5%   13.2%
Residence Inn   34   80.6%   79.4%   1.5%   $147.46   $144.84   1.8%   $118.85   $114.96   3.4%   17.0%
SpringHill Suites   17   76.9%   77.4%   (0.7)%   $120.30   $118.47   1.5%   $92.50   $91.72   0.9%   6.5%
Upscale Total   167   77.5%   77.2%   0.4%   $136.77   $135.58   0.9%   $105.99   $104.70   1.2%   74.6%
                                             
Upper Midscale                                            
Fairfield Inn/Fairfield Inn & Suites   11   78.9%   78.4%   0.6%   $118.91   $117.08   1.6%   $93.84   $91.81   2.2%   3.7%
Hampton Inn/Hampton Inn & Suites   36   77.3%   77.4%   (0.1)%   $128.05   $126.93   0.9%   $99.04   $98.24   0.8%   13.1%
Home2 Suites   8   79.3%   77.3%   2.6%   $128.22   $126.02   1.7%   $101.64   $97.35   4.4%   2.9%
TownePlace Suites   12   75.5%   75.1%   0.5%   $103.82   $100.08   3.7%   $78.36   $75.14   4.3%   3.0%
Upper Midscale Total   67   77.5%   77.2%   0.4%   $122.87   $121.06   1.5%   $95.26   $93.45   1.9%   22.7%
                                             
Upper Upscale                                            
Embassy Suites   2   86.9%   82.1%   5.8%   $171.46   $170.49   0.6%   $149.05   $140.04   6.4%   1.4%
Marriott   2   65.5%   61.9%   5.8%   $149.05   $147.79   0.9%   $97.62   $91.49   6.7%   1.9%
Renaissance   1   94.3%   88.6%   6.5%   $250.34   $263.15   (4.9)%   $236.13   $233.09   1.3%   (0.6)%
Upper Upscale Total   5   76.6%   72.3%   6.0%   $178.59   $180.42   (1.0)%   $136.89   $130.52   4.9%   2.7%
                                             
Total Portfolio   239   77.5%   77.0%   0.6%   $134.75   $133.45   1.0%   $104.40   $102.80   1.6%   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 2017   Q4 2016   % Change   Q4 2017   Q4 2016   % Change   Q4 2017   Q4 2016   % Change   Q4 2017
STR Location                                            
Airport   16   77.2%   77.7%   (0.7)%   $131.26   $124.88   5.1%   $101.29   $97.05   4.4%   6.7%
Interstate   8   67.7%   70.8%   (4.4)%   $105.98   $106.92   (0.9)%   $71.78   $75.72   (5.2)%   2.3%
Resort   9   75.0%   76.1%   (1.4)%   $124.12   $118.63   4.6%   $93.13   $90.29   3.1%   4.1%
Small Metro/Town   19   67.6%   68.5%   (1.3)%   $107.88   $107.41   0.4%   $72.97   $73.63   (0.9)%   4.4%
Suburban   148   74.4%   72.4%   2.8%   $127.38   $124.75   2.1%   $94.77   $90.29   5.0%   60.4%
Urban   39   72.2%   71.4%   1.1%   $150.81   $150.83   (0.0)%   $108.85   $107.69   1.1%   22.1%
                                             
Total Portfolio   239   73.5%   72.4%   1.5%   $130.28   $127.82   1.9%   $95.78   $92.55   3.5%   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 2017   YTD 2016   % Change   YTD 2017   YTD 2016   % Change   YTD 2017   YTD 2016   % Change   YTD 2017
STR Location                                            
Airport   16   81.6%   82.1%   (0.6)%   $132.65   $128.83   3.0%   $108.26   $105.81   2.3%   6.6%
Interstate   8   71.7%   73.0%   (1.7)%   $110.92   $112.42   (1.3)%   $79.55   $82.02   (3.0)%   2.4%
Resort   9   80.6%   79.3%   1.7%   $140.50   $136.60   2.9%   $113.30   $108.27   4.6%   4.9%
Small Metro/Town   19   72.0%   72.4%   (0.5)%   $112.03   $109.93   1.9%   $80.65   $79.55   1.4%   4.7%
Suburban   148   77.6%   76.7%   1.1%   $131.00   $130.29   0.5%   $101.62   $99.94   1.7%   58.6%
Urban   39   77.8%   78.0%   (0.3)%   $156.28   $154.89   0.9%   $121.63   $120.85   0.6%   22.8%
                                             
Total Portfolio   239   77.5%   77.0%   0.6%   $134.75   $133.45   1.0%   $104.40   $102.80   1.6%   100.0%
                                             

Note:  Location categorization is based on STR designation.



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