Apple Hospitality REIT Reports Results of Operations for Second Quarter 2024
Selected Statistical and Financial Data
As of and For the Three and Six Months Ended (Unaudited) (in thousands, except statistical and per share amounts)(1) |
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Three Months Ended |
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Six Months Ended |
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2024 |
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2023 |
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% Change |
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2024 |
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2023 |
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% Change |
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Net income |
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13.2% |
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30.3% |
Net income per share |
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6.9% |
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23.3% |
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Operating income |
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12.6% |
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24.8% |
Operating margin % |
24.0% |
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23.0% |
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100 bps |
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22.9% |
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19.7% |
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320 bps |
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Adjusted EBITDAre |
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9.1% |
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7.7% |
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1.5% |
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(0.7%) |
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39.1% |
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39.6% |
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(50 bps) |
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36.6% |
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37.7% |
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(110 bps) |
Modified funds from operations (MFFO) |
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8.9% |
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7.5% |
MFFO per share |
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2.0% |
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1.2% |
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Average Daily Rate (ADR) (Actual) |
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1.2% |
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1.0% |
Occupancy (Actual) |
79.8% |
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78.2% |
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2.0% |
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75.9% |
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75.1% |
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1.1% |
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3.3% |
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2.1% |
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Comparable Hotels ADR |
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0.3% |
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0.2% |
Comparable Hotels Occupancy |
79.8% |
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78.1% |
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2.2% |
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76.0% |
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75.2% |
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1.1% |
Comparable Hotels RevPAR |
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2.5% |
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1.2% |
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Distributions paid |
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5.8% |
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(0.1%) |
Distributions paid per share |
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0.0% |
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(5.4%) |
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Cash and cash equivalents |
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Total debt outstanding |
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Total debt outstanding, net of cash and cash equivalents |
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Total debt outstanding, net of cash and cash equivalents, to total capitalization (2) |
30.4% |
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___________________________ | |
(1) |
Explanations of and reconciliations to net income determined in accordance with generally accepted accounting principles (“GAAP”) of non-GAAP financial measures, Adjusted EBITDAre, |
(2) |
Total debt outstanding, net of cash and cash equivalents ("net total debt outstanding"), divided by net total debt outstanding plus equity market capitalization based on the Company’s closing share price of |
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As of
Second Quarter 2024 Highlights
-
Strong operating performance: For the second quarter 2024, Comparable Hotels ADR was
$163 , a marginal improvement over second quarter 2023; Comparable Hotels Occupancy was 80%, an increase of more than 2% over second quarter 2023; and Comparable Hotels RevPAR was$130 , an increase of 2.5% over second quarter 2023. Comparable Hotels Occupancy, ADR and RevPAR exceeded industry averages as reported by STR for the second quarter 2024. Based on preliminary results for the Company's portfolio for the month ofJuly 2024 , Comparable Hotels Occupancy was approximately 77%, flat compared toJuly 2023 , with Comparable Hotels ADR down slightly as compared toJuly 2023 . -
Strong bottom-line performance: The Company achieved
Comparable Hotels Adjusted Hotel EBITDA of approximately$152 million , a 1.5% improvement over second quarter 2023, andComparable Hotels Adjusted Hotel EBITDA Margin of approximately 39%, down 50 bps to second quarter 2023. The Company achieved Adjusted EBITDAre of approximately$141 million for the second quarter 2024, an increase of 9% as compared to second quarter 2023. The Company achieved MFFO of approximately$121 million for the second quarter 2024, an increase of 9% as compared to second quarter 2023. -
Transactional activity: During the second quarter 2024, the Company acquired the 262-room
Embassy Suites byHilton Madison Downtown for a total purchase price of approximately$79.5 million and sold its 82-room SpringHill Suites byMarriott Greensboro for a gross sales price of approximately$7.1 million . -
Capital markets: During the second quarter 2024, the Company purchased, under its Share Repurchase Program, approximately 1.1 million of its common shares at a weighted-average market purchase price of approximately
$14.35 per common share, for an aggregate purchase price of approximately$15.5 million . Subsequent to the end of the second quarter 2024, the Company purchased, under its Share Repurchase Program, an additional 0.5 million of its common shares, bringing the total shares purchased year to date throughJuly 31, 2024 , to approximately 1.6 million common shares at a weighted-average market purchase price of approximately$14.29 per common share, for an aggregate purchase price of approximately$23.1 million . -
Balance sheet: The Company has maintained the strength and flexibility of its balance sheet. At
June 30, 2024 , the Company’s total debt to total capitalization, net of cash and cash equivalents, was approximately 30%. -
Monthly distributions: During the three months ended
June 30, 2024 , the Company paid distributions totaling$0.24 per common share. Based on the Company’s common stock closing price of$14.48 onAugust 2, 2024 , the current annualized regular monthly cash distribution of$0.96 per common share represents an annual yield of approximately 6.6%.
The Company is providing monthly performance detail for its
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% Change |
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April |
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May |
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June |
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April |
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May |
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June |
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April |
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May |
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June |
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2024 |
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2024 |
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2024 |
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Q2 2024 |
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2023 |
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2023 |
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2023 |
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Q2 2023 |
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2023 |
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2023 |
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2023 |
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Q2 2023 |
ADR ( |
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1.2% |
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(0.1%) |
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(0.1%) |
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0.3% |
Occupancy ( |
79.6% |
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78.8% |
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81.1% |
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79.8% |
|
77.0% |
|
76.9% |
|
80.5% |
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78.1% |
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3.4% |
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2.5% |
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0.7% |
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2.2% |
RevPAR ( |
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4.6% |
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2.4% |
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0.6% |
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2.5% |
Operating income (Actual) |
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18.5% |
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14.8% |
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6.3% |
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12.6% |
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11.6% |
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6.4% |
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4.8% |
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7.4% |
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5.4% |
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0.3% |
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(0.7%) |
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1.5% |
___________________________ | |
(1) |
See explanation and reconciliation of |
(2) |
See explanation and reconciliation of |
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Portfolio Activity
Acquisitions
As previously announced, since the beginning of 2024, the Company has acquired two hotels for a combined total purchase price of approximately
-
In
March 2024 , the Company acquired the 234-roomAC Hotel byMarriott Washington DC Convention Center for a total purchase price of approximately$116.8 million , or$499,000 per key. -
In
June 2024 , the Company acquired the newly built, 262-roomEmbassy Suites byHilton Madison Downtown for a total purchase price of approximately$79.5 million , or$303,000 per key.
Contract for Potential Acquisition
As previously announced, the Company continues to have one additional hotel under contract for purchase, a Motto by Hilton that is under development in downtown
Dispositions
As previously announced, during the six months ended
-
In
February 2024 , the Company sold the 122-roomHampton Inn byHilton Bentonville/Rogers and the 126-room Homewood Suites byHilton Bentonville-Rogers in one transaction, for a combined gross sales price of approximately$33.5 million . The Company used a portion of the net proceeds from the sale of these two hotels to complete a 1031 exchange with the acquisition of theAC Hotel Washington DC Convention Center inMarch 2024 , which resulted in the deferral of taxable gains of$15.1 million . -
In
May 2024 , the Company sold the 82-room SpringHill Suites byMarriott Greensboro for a gross sales price of approximately$7.1 million .
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
Balance Sheet and Liquidity
Summary
As of
On
Capital Markets
Share Repurchase Program
The Company has in place a Share Repurchase Program that provides for share repurchases in open market transactions. During the three months ended
ATM Program
The Company also has in place an at-the-market offering program (the “ATM Program”). As of
Shareholder Distributions
During the three months ended
Updated 2024 Outlook
The Company is updating its operational and financial outlook for 2024. 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. As compared to the midpoint of previously provided 2024 guidance, the Company is decreasing Net Income by
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Updated 2024 Guidance(1) |
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Low-End |
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High-End |
Net income |
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Comparable Hotels RevPAR Change |
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0.5% |
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2.5% |
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|
35.0% |
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35.8% |
Adjusted EBITDAre |
|
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Capital expenditures |
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___________________________ | |
(1) |
Explanations of and reconciliations to net income guidance of Adjusted EBITDAre and |
Second Quarter 2024 Earnings Conference Call
The Company will host a quarterly conference call for investors and interested parties at
About
Apple Hospitality REIT Non-GAAP Financial Measures
The Company considers the following non-GAAP financial measures useful to investors as key supplemental measures of its operating performance: Funds from Operations (“FFO”); Modified FFO (“MFFO”); Earnings Before Interest, Income Taxes, Depreciation and Amortization (“EBITDA”); Earnings Before Interest, Income Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”); Adjusted EBITDAre;
Forward-Looking Statements Disclaimer
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are typically 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 the Company 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 the Company to effectively acquire and dispose of properties and redeploy proceeds; the anticipated timing and frequency of shareholder distributions; the ability of the Company to fund capital obligations; the ability of the Company to successfully integrate pending transactions and implement its operating strategy; changes in general political, economic and competitive conditions and specific market conditions (including the potential effects of inflation or a recessionary environment); reduced business and leisure travel due to geopolitical uncertainty, including terrorism and acts of war; travel-related health concerns, including widespread outbreaks of infectious or contagious diseases in the
For additional information or to receive press releases by email, visit www.applehospitalityreit.com .
Consolidated Balance Sheets (in thousands, except share data) |
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2024 |
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2023 |
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(unaudited) |
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Assets |
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Investment in real estate, net of accumulated depreciation and amortization of |
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Assets held for sale |
|
- |
|
15,283 |
Cash and cash equivalents |
|
7,224 |
|
10,287 |
Restricted cash-furniture, fixtures and other escrows |
|
31,295 |
|
33,331 |
Due from third-party managers, net |
|
62,894 |
|
36,437 |
Other assets, net |
|
62,109 |
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64,586 |
Total Assets |
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Liabilities |
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Debt, net |
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Finance lease liabilities |
|
111,776 |
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111,892 |
Accounts payable and other liabilities |
|
93,763 |
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129,931 |
Total Liabilities |
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1,742,430 |
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1,613,317 |
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Shareholders' Equity |
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Preferred stock, authorized 30,000,000 shares; none issued and outstanding |
|
- |
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- |
Common stock, no par value, authorized 800,000,000 shares; issued and outstanding 241,280,329 and 241,515,532 shares, respectively |
|
4,790,949 |
|
4,794,804 |
Accumulated other comprehensive income |
|
21,380 |
|
20,404 |
Distributions greater than net income |
|
(1,479,359) |
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(1,491,227) |
Total Shareholders' Equity |
|
3,332,970 |
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3,323,981 |
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Total Liabilities and Shareholders' Equity |
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___________________________ | ||||
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 |
Consolidated Statements of Operations and Comprehensive Income (Unaudited) (in thousands, except per share data) |
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Three Months Ended |
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Six Months Ended |
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2024 |
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2023 |
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2024 |
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2023 |
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Revenues: |
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Room |
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$ |
353,689 |
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$ |
331,043 |
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$ |
652,435 |
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$ |
616,563 |
|
Food and beverage |
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|
17,857 |
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|
15,507 |
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|
32,919 |
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|
28,456 |
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Other |
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|
18,531 |
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|
15,080 |
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|
34,235 |
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|
28,065 |
|
Total revenue |
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|
390,077 |
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|
361,630 |
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|
719,589 |
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|
673,084 |
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Expenses: |
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Hotel operating expense: |
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Operating |
|
|
91,523 |
|
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|
84,911 |
|
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|
175,319 |
|
|
|
163,574 |
|
Hotel administrative |
|
|
31,453 |
|
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|
29,442 |
|
|
|
61,205 |
|
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|
56,761 |
|
Sales and marketing |
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|
33,649 |
|
|
|
30,936 |
|
|
|
63,488 |
|
|
|
58,636 |
|
Utilities |
|
|
11,665 |
|
|
|
10,776 |
|
|
|
23,184 |
|
|
|
22,474 |
|
Repair and maintenance |
|
|
17,626 |
|
|
|
16,451 |
|
|
|
34,468 |
|
|
|
32,116 |
|
Franchise fees |
|
|
17,527 |
|
|
|
15,868 |
|
|
|
32,281 |
|
|
|
29,512 |
|
Management fees |
|
|
12,848 |
|
|
|
12,129 |
|
|
|
23,610 |
|
|
|
22,605 |
|
Total hotel operating expense |
|
|
216,291 |
|
|
|
200,513 |
|
|
|
413,555 |
|
|
|
385,678 |
|
Property taxes, insurance and other |
|
|
21,940 |
|
|
|
19,994 |
|
|
|
42,932 |
|
|
|
39,669 |
|
General and administrative |
|
|
11,065 |
|
|
|
12,100 |
|
|
|
21,649 |
|
|
|
23,561 |
|
Depreciation and amortization |
|
|
47,715 |
|
|
|
45,994 |
|
|
|
94,538 |
|
|
|
91,900 |
|
Total expense |
|
|
297,011 |
|
|
|
278,601 |
|
|
|
572,674 |
|
|
|
540,808 |
|
|
|
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|
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||||
Gain on sale of real estate |
|
|
449 |
|
|
|
- |
|
|
|
18,215 |
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|
- |
|
|
|
|
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|
|
|
|
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|
||||
Operating income |
|
|
93,515 |
|
|
|
83,029 |
|
|
|
165,130 |
|
|
|
132,276 |
|
|
|
|
|
|
|
|
|
|
|
|
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|
||||
Interest and other expense, net |
|
|
(19,370 |
) |
|
|
(17,499 |
) |
|
|
(36,679 |
) |
|
|
(33,503 |
) |
|
|
|
|
|
|
|
|
|
|
|
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|
||||
Income before income taxes |
|
|
74,145 |
|
|
|
65,530 |
|
|
|
128,451 |
|
|
|
98,773 |
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Income tax expense |
|
|
(214 |
) |
|
|
(241 |
) |
|
|
(470 |
) |
|
|
(561 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
73,931 |
|
|
$ |
65,289 |
|
|
$ |
127,981 |
|
|
$ |
98,212 |
|
|
|
|
|
|
|
|
|
|
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|
||||
Other comprehensive income (loss): |
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|
|
|
|
|
|
|
|
|
|
||||
Interest rate derivatives |
|
|
(2,732 |
) |
|
|
7,224 |
|
|
|
976 |
|
|
|
(882 |
) |
|
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|
|
|
|
|
|
|
|
|
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|
||||
Comprehensive income |
|
$ |
71,199 |
|
|
$ |
72,513 |
|
|
$ |
128,957 |
|
|
$ |
97,330 |
|
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Basic and diluted net income per common share |
|
$ |
0.31 |
|
|
$ |
0.29 |
|
|
$ |
0.53 |
|
|
$ |
0.43 |
|
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||||
Weighted average common shares outstanding - basic and diluted |
|
|
242,174 |
|
|
|
229,041 |
|
|
|
242,291 |
|
|
|
229,218 |
|
___________________________ | ||||||||||||||||
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 |
Comparable Hotels Operating Metrics and Statistical Data (Unaudited) (in thousands, except statistical data) |
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Three Months Ended |
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Six Months Ended |
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% Change |
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% Change |
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|
2024 |
|
2023 |
|
2023 |
|
2024 |
|
2023 |
|
2023 |
Operating income (Actual) |
|
|
|
|
|
12.6% |
|
|
|
|
|
24.8% |
Operating margin % (Actual) |
|
24.0% |
|
23.0% |
|
100 bps |
|
22.9% |
|
19.7% |
|
320 bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable Hotels Total Revenue |
|
|
|
|
|
2.7% |
|
|
|
|
|
2.1% |
Comparable Hotels Total Operating Expenses |
|
|
|
|
|
3.5% |
|
|
|
|
|
3.8% |
|
|
|
|
|
|
1.5% |
|
|
|
|
|
(0.7%) |
|
|
39.1% |
|
39.6% |
|
(50 bps) |
|
36.6% |
|
37.7% |
|
(110 bps) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR ( |
|
|
|
|
|
0.3% |
|
|
|
|
|
0.2% |
Occupancy ( |
|
79.8% |
|
78.1% |
|
2.2% |
|
76.0% |
|
75.2% |
|
1.1% |
RevPAR ( |
|
|
|
|
|
2.5% |
|
|
|
|
|
1.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR (Actual) |
|
|
|
|
|
1.2% |
|
|
|
|
|
1.0% |
Occupancy (Actual) |
|
79.8% |
|
78.2% |
|
2.0% |
|
75.9% |
|
75.1% |
|
1.1% |
RevPAR (Actual) |
|
|
|
|
|
3.3% |
|
|
|
|
|
2.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to Actual Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue (Actual) |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from acquisitions prior to ownership |
|
- |
|
21,825 |
|
|
|
4,775 |
|
41,611 |
|
|
Revenue from dispositions |
|
(469) |
|
(3,570) |
|
|
|
(1,768) |
|
(5,853) |
|
|
Revenue from non-hotel property |
|
(2,503) |
|
(2,880) |
|
|
|
(4,546) |
|
(5,723) |
|
|
Comparable Hotels Total Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AHEBITDA from acquisitions prior to ownership |
|
- |
|
9,725 |
|
|
|
1,882 |
|
18,045 |
|
|
AHEBITDA from dispositions |
|
(165) |
|
(1,471) |
|
|
|
(342) |
|
(1,800) |
|
|
AHEBITDA from non-hotel property (2) |
|
- |
|
(222) |
|
|
|
- |
|
574 |
|
|
Comparable Hotels AHEBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
___________________________ | |
(1) |
Represents the Company's actual |
(2) |
|
Note:
|
|
|
|
Reconciliation of net income to non-GAAP financial measures is included in the following pages. |
Comparable Hotels Quarterly Operating Metrics and Statistical Data (Unaudited) (in thousands, except statistical data) |
||||||||||||
|
|
2023 |
|
2024 |
||||||||
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Q1 |
|
Q2 |
Operating income (Actual) |
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin % (Actual) |
|
15.8% |
|
23.0% |
|
21.3% |
|
12.5% |
|
21.7% |
|
24.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable Hotels Total Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Comparable Hotels Total Operating Expenses |
|
210,578 |
|
227,729 |
|
232,996 |
|
214,021 |
|
219,447 |
|
235,590 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35.4% |
|
39.6% |
|
37.3% |
|
33.0% |
|
33.7% |
|
39.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR ( |
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy ( |
|
72.2% |
|
78.1% |
|
77.2% |
|
69.8% |
|
72.1% |
|
79.8% |
RevPAR ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR (Actual) |
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy (Actual) |
|
72.0% |
|
78.2% |
|
77.1% |
|
69.6% |
|
72.0% |
|
79.8% |
RevPAR (Actual) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to Actual Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue (Actual) |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from acquisitions prior to ownership |
|
19,786 |
|
21,825 |
|
18,999 |
|
12,245 |
|
4,775 |
|
- |
Revenue from dispositions |
|
(2,283) |
|
(3,570) |
|
(3,427) |
|
(2,908) |
|
(1,299) |
|
(469) |
Revenue from non-hotel property |
|
(2,843) |
|
(2,880) |
|
(2,012) |
|
(2,127) |
|
(2,043) |
|
(2,503) |
Comparable Hotels Total Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AHEBITDA from acquisitions prior to ownership |
|
8,320 |
|
9,725 |
|
7,978 |
|
4,842 |
|
1,882 |
|
- |
AHEBITDA from dispositions |
|
(329) |
|
(1,471) |
|
(1,315) |
|
(935) |
|
(177) |
|
(165) |
AHEBITDA from non-hotel property (2) |
|
796 |
|
(222) |
|
- |
|
- |
|
- |
|
- |
Comparable Hotels AHEBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
___________________________ | |
(1) |
Represents the Company's actual |
(2) |
|
Note:
|
|
|
|
Reconciliation of net income to non-GAAP financial measures is included in the following pages. |
Same Store Hotels Operating Metrics and Statistical Data (Unaudited) (in thousands, except statistical data) |
||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
|
|
|
|
||||||||
|
|
|
|
|
|
% Change |
|
|
|
|
|
% Change |
|
|
2024 |
|
2023 |
|
2023 |
|
2024 |
|
2023 |
|
2023 |
Operating income (Actual) |
|
|
|
|
|
12.6% |
|
|
|
|
|
24.8% |
Operating margin % (Actual) |
|
24.0% |
|
23.0% |
|
100 bps |
|
22.9% |
|
19.7% |
|
320 bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Store Hotels Total Revenue |
|
|
|
|
|
2.4% |
|
|
|
|
|
1.9% |
Same Store Hotels Total Operating Expenses |
|
222,619 |
|
215,617 |
|
3.2% |
|
429,985 |
|
414,729 |
|
3.7% |
|
|
|
|
|
|
1.1% |
|
|
|
|
|
(1.2%) |
|
|
38.8% |
|
39.3% |
|
(50 bps) |
|
36.2% |
|
37.3% |
|
(110 bps) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR ( |
|
|
|
|
|
0.0% |
|
|
|
|
|
(0.1%) |
Occupancy ( |
|
79.9% |
|
78.2% |
|
2.2% |
|
75.9% |
|
75.1% |
|
1.1% |
RevPAR ( |
|
|
|
|
|
2.2% |
|
|
|
|
|
0.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR (Actual) |
|
|
|
|
|
1.2% |
|
|
|
|
|
1.0% |
Occupancy (Actual) |
|
79.8% |
|
78.2% |
|
2.0% |
|
75.9% |
|
75.1% |
|
1.1% |
RevPAR (Actual) |
|
|
|
|
|
3.3% |
|
|
|
|
|
2.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to Actual Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue (Actual) |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from acquisitions |
|
(23,359) |
|
(25) |
|
|
|
(39,544) |
|
(25) |
|
|
Revenue from dispositions |
|
(469) |
|
(3,570) |
|
|
|
(1,768) |
|
(5,853) |
|
|
Revenue from non-hotel property |
|
(2,503) |
|
(2,880) |
|
|
|
(4,546) |
|
(5,723) |
|
|
Same Store Hotels Total Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AHEBITDA from acquisitions |
|
(10,388) |
|
(13) |
|
|
|
(17,385) |
|
(13) |
|
|
AHEBITDA from dispositions |
|
(165) |
|
(1,471) |
|
|
|
(342) |
|
(1,800) |
|
|
AHEBITDA from non-hotel property (2) |
|
- |
|
(222) |
|
|
|
- |
|
574 |
|
|
Same Store Hotels AHEBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
___________________________ | |
(1) |
Represents the Company's actual |
(2) |
|
Note:
|
|
|
|
Reconciliation of net income to non-GAAP financial measures is included in the following pages. |
Same Store Hotels Quarterly Operating Metrics and Statistical Data (Unaudited) (in thousands, except statistical data) |
||||||||||||
|
|
2023 |
|
2024 |
||||||||
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Q1 |
|
Q2 |
Operating income (Actual) |
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin % (Actual) |
|
15.8% |
|
23.0% |
|
21.3% |
|
12.5% |
|
21.7% |
|
24.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Store Hotels Total Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Same Store Hotels Total Operating Expenses |
|
199,112 |
|
215,617 |
|
220,656 |
|
202,049 |
|
207,366 |
|
222,619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35.0% |
|
39.3% |
|
37.1% |
|
32.6% |
|
33.1% |
|
38.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR ( |
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy ( |
|
72.1% |
|
78.2% |
|
77.1% |
|
69.7% |
|
71.9% |
|
79.9% |
RevPAR ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADR (Actual) |
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy (Actual) |
|
72.0% |
|
78.2% |
|
77.1% |
|
69.6% |
|
72.0% |
|
79.8% |
RevPAR (Actual) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to Actual Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue (Actual) |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from acquisitions |
|
- |
|
(25) |
|
(2,109) |
|
(7,522) |
|
(16,185) |
|
(23,359) |
Revenue from dispositions |
|
(2,283) |
|
(3,570) |
|
(3,427) |
|
(2,908) |
|
(1,299) |
|
(469) |
Revenue from non-hotel property |
|
(2,843) |
|
(2,880) |
|
(2,012) |
|
(2,127) |
|
(2,043) |
|
(2,503) |
Same Store Hotels Total Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AHEBITDA from acquisitions |
|
- |
|
(13) |
|
(790) |
|
(2,953) |
|
(6,997) |
|
(10,388) |
AHEBITDA from dispositions |
|
(329) |
|
(1,471) |
|
(1,315) |
|
(935) |
|
(177) |
|
(165) |
AHEBITDA from non-hotel property (2) |
|
796 |
|
(222) |
|
- |
|
- |
|
- |
|
- |
Same Store Hotels AHEBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
___________________________ | |
(1) |
Represents the Company's actual |
(2) |
|
Note:
|
|
|
|
Reconciliation of net income to non-GAAP financial measures is included in the following pages. |
Reconciliation of Net Income to EBITDA, EBITDAre, Adjusted EBITDAre and
(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.
In addition to EBITDA, the Company also calculates and presents EBITDAre in accordance with standards established by the
The Company also considers the exclusion of non-cash straight-line operating ground lease expense from EBITDAre useful, as this expense does not reflect the underlying performance of the related hotels (Adjusted EBITDAre).
The Company further excludes actual corporate-level general and administrative expense for the Company as well as Adjusted EBITDAre from the non-hotel property from Adjusted EBITDAre (
The following table reconciles the Company’s GAAP net income to EBITDA, EBITDAre, Adjusted EBITDAre and
|
|
2023 |
|
2024 |
||||||||
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
Q1 |
|
Q2 |
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
45,906 |
|
45,994 |
|
45,498 |
|
45,844 |
|
46,823 |
|
47,715 |
Amortization of favorable and unfavorable operating leases, net |
|
97 |
|
85 |
|
99 |
|
102 |
|
102 |
|
102 |
Interest and other expense, net |
|
16,004 |
|
17,499 |
|
17,470 |
|
17,884 |
|
17,309 |
|
19,370 |
Income tax expense |
|
320 |
|
241 |
|
313 |
|
261 |
|
256 |
|
214 |
EBITDA |
|
95,250 |
|
129,108 |
|
121,892 |
|
84,856 |
|
118,540 |
|
141,332 |
Gain on sale of real estate |
|
- |
|
- |
|
- |
|
- |
|
(17,766) |
|
(449) |
Loss on impairment of depreciable real estate assets |
|
- |
|
- |
|
- |
|
5,644 |
|
- |
|
- |
EBITDAre |
|
95,250 |
|
129,108 |
|
121,892 |
|
90,500 |
|
100,774 |
|
140,883 |
Non-cash straight-line operating ground lease expense |
|
38 |
|
36 |
|
35 |
|
36 |
|
36 |
|
33 |
Adjusted EBITDAre |
|
95,288 |
|
129,144 |
|
121,927 |
|
90,536 |
|
100,810 |
|
140,916 |
General and administrative expense |
|
11,461 |
|
12,100 |
|
11,079 |
|
12,761 |
|
10,584 |
|
11,065 |
Adjusted EBITDAre from non-hotel property (1) |
|
- |
|
- |
|
(845) |
|
(1,559) |
|
(1,601) |
|
(301) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Includes results of the non-hotel property subsequent to its lease to a third-party hotel operator for all hotel operations. This property's Adjusted EBITDAre results are not included in |
Reconciliation of Net Income to FFO and MFFO
(Unaudited)
(in thousands)
The Company calculates and presents FFO in accordance with standards established by Nareit, which defines FFO as net income (loss) (computed in accordance with GAAP), excluding gains and losses from the sale of certain real estate assets (including gains and losses from change in control), extraordinary items as defined by GAAP, and the cumulative effect of changes in accounting principles, plus real estate related depreciation, amortization and impairments, and adjustments for unconsolidated affiliates. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most real estate industry investors consider FFO to be helpful in evaluating a real estate 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 calculates MFFO by further adjusting FFO for the exclusion of amortization of finance ground lease assets, amortization of favorable and unfavorable operating leases, net and non-cash straight-line operating ground lease expense, as these expenses do not reflect the underlying performance of the related hotels. The Company presents MFFO when evaluating its performance because it believes that it provides further useful supplemental information to investors regarding its ongoing operating performance.
The following table reconciles the Company’s GAAP net income to FFO and MFFO for the three and six months ended
|
|
Three Months Ended
|
|
Six Months Ended
|
||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Net income |
|
|
|
|
|
|
|
|
Depreciation of real estate owned |
|
46,952 |
|
45,229 |
|
93,011 |
|
90,371 |
Gain on sale of real estate |
|
(449) |
|
- |
|
(18,215) |
|
- |
Funds from operations |
|
120,434 |
|
110,518 |
|
202,777 |
|
188,583 |
Amortization of finance ground lease assets |
|
760 |
|
760 |
|
1,519 |
|
1,519 |
Amortization of favorable and unfavorable operating leases, net |
|
102 |
|
85 |
|
204 |
|
182 |
Non-cash straight-line operating ground lease expense |
|
33 |
|
36 |
|
69 |
|
74 |
Modified funds from operations |
|
|
|
|
|
|
|
|
2024 Guidance Reconciliation of Net Income to EBITDA, EBITDAre, Adjusted EBITDAre,
(Unaudited)
(in thousands)
The guidance of net income, EBITDA, EBITDAre, Adjusted EBITDAre,
The following table reconciles the Company’s GAAP net income guidance to EBITDA, EBITDAre, Adjusted EBITDAre,
|
Year Ending |
||
|
Low-End |
|
High-End |
Net income |
|
|
|
Depreciation and amortization |
190,000 |
|
187,000 |
Amortization of favorable and unfavorable leases, net |
408 |
|
408 |
Interest and other expense, net |
81,000 |
|
79,000 |
Income tax expense |
700 |
|
1,100 |
EBITDA |
|
|
|
Gain on sale of real estate |
(18,215) |
|
(18,215) |
EBITDAre |
|
|
|
Non-cash straight-line operating ground lease expense |
135 |
|
135 |
Adjusted EBITDAre |
|
|
|
General and administrative expense |
37,500 |
|
42,500 |
AEBITDAre from non-hotel property (1) |
(500) |
|
(2,000) |
|
|
|
|
AHEBITDA from acquisitions prior to ownership (2) |
1,882 |
|
1,882 |
AHEBITDA from dispositions |
(342) |
|
(342) |
|
|
|
|
___________________________ | |
(1) |
Represents Adjusted EBITDAre from the non-hotel property. |
(2) |
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. |
Debt Summary (Unaudited) ($ in thousands)
|
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
2024 |
|
|
2025 |
|
|
2026 |
|
|
2027 |
|
|
2028 |
|
|
Thereafter |
|
|
Total |
|
|
Value |
|
||||||||
Total debt: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Maturities |
|
$ |
109,050 |
|
|
$ |
295,140 |
|
|
$ |
243,649 |
|
|
$ |
278,602 |
|
|
$ |
334,066 |
|
|
$ |
281,948 |
|
|
$ |
1,542,455 |
|
|
$ |
1,501,746 |
|
Average interest rates (1) |
|
|
5.0 |
% |
|
|
5.2 |
% |
|
|
5.4 |
% |
|
|
5.3 |
% |
|
|
4.7 |
% |
|
|
3.9 |
% |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Variable-rate debt: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Maturities (2) |
|
$ |
85,000 |
|
|
$ |
225,000 |
|
|
$ |
169,000 |
|
|
$ |
275,000 |
|
|
$ |
300,000 |
|
|
$ |
85,000 |
|
|
$ |
1,139,000 |
|
|
$ |
1,137,042 |
|
Average interest rates (1) |
|
|
5.3 |
% |
|
|
5.6 |
% |
|
|
5.9 |
% |
|
|
5.9 |
% |
|
|
5.2 |
% |
|
|
3.6 |
% |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed-rate debt: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Maturities |
|
$ |
24,050 |
|
|
$ |
70,140 |
|
|
$ |
74,649 |
|
|
$ |
3,602 |
|
|
$ |
34,066 |
|
|
$ |
196,948 |
|
|
$ |
403,455 |
|
|
$ |
364,704 |
|
Average interest rates |
|
|
4.1 |
% |
|
|
4.0 |
% |
|
|
4.0 |
% |
|
|
4.1 |
% |
|
|
4.1 |
% |
|
|
4.1 |
% |
|
|
|
|
|
|
___________________________ | |
(1) |
The average interest rate gives effect to interest rate swaps, as applicable. |
(2) |
On |
Note:
See further information on the Company’s indebtedness in the Company’s Quarterly Report on Form 10-Q for the quarter ended |
Comparable Hotels Operating Metrics by Market
Three Months Ended (Unaudited) |
|||||||||||||||
Top 20 Markets |
|
|
Occupancy |
|
ADR |
|
RevPAR |
|
% of Adjusted
|
||||||
|
# of Hotels |
|
Q2 2024 |
Q2 2023 |
% Change |
|
Q2 2024 |
Q2 2023 |
% Change |
|
Q2 2024 |
Q2 2023 |
% Change |
|
Q2 2024 |
Top 20 Markets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7 |
|
78.5% |
79.0% |
(0.6%) |
|
|
|
0.1% |
|
|
|
(0.5%) |
|
5.1% |
|
8 |
|
89.6% |
86.7% |
3.3% |
|
|
|
(2.5%) |
|
|
|
0.8% |
|
4.8% |
|
5 |
|
85.8% |
85.2% |
0.7% |
|
|
|
4.0% |
|
|
|
4.6% |
|
4.5% |
|
10 |
|
81.6% |
77.6% |
5.2% |
|
|
|
7.9% |
|
|
|
13.4% |
|
4.3% |
|
4 |
|
79.9% |
77.8% |
2.7% |
|
|
|
(0.1%) |
|
|
|
2.5% |
|
3.4% |
|
4 |
|
84.4% |
85.3% |
(1.1%) |
|
|
|
2.8% |
|
|
|
1.7% |
|
3.4% |
|
6 |
|
88.5% |
82.4% |
7.4% |
|
|
|
1.3% |
|
|
|
8.9% |
|
3.1% |
|
6 |
|
80.5% |
81.3% |
(1.0%) |
|
|
|
(1.7%) |
|
|
|
(2.7%) |
|
3.0% |
Salt |
5 |
|
80.4% |
79.0% |
1.8% |
|
|
|
5.5% |
|
|
|
7.3% |
|
3.0% |
|
5 |
|
86.3% |
83.6% |
3.2% |
|
|
|
(5.3%) |
|
|
|
(2.2%) |
|
2.9% |
|
7 |
|
76.1% |
70.7% |
7.6% |
|
|
|
(0.1%) |
|
|
|
7.5% |
|
2.9% |
|
2 |
|
89.4% |
83.9% |
6.6% |
|
|
|
(1.2%) |
|
|
|
5.3% |
|
2.7% |
|
3 |
|
75.6% |
72.3% |
4.6% |
|
|
|
0.5% |
|
|
|
5.2% |
|
2.5% |
|
3 |
|
83.2% |
81.0% |
2.7% |
|
|
|
(1.2%) |
|
|
|
1.5% |
|
2.4% |
|
4 |
|
84.4% |
83.0% |
1.7% |
|
|
|
(0.2%) |
|
|
|
1.5% |
|
2.2% |
|
3 |
|
85.9% |
82.2% |
4.5% |
|
|
|
4.8% |
|
|
|
9.4% |
|
2.0% |
North |
4 |
|
80.4% |
82.4% |
(2.4%) |
|
|
|
(1.1%) |
|
|
|
(3.6%) |
|
2.0% |
|
1 |
|
83.5% |
80.2% |
4.1% |
|
|
|
9.4% |
|
|
|
13.9% |
|
1.6% |
|
4 |
|
80.1% |
79.9% |
0.3% |
|
|
|
(1.4%) |
|
|
|
(1.1%) |
|
1.6% |
|
6 |
|
79.2% |
69.8% |
13.5% |
|
|
|
2.4% |
|
|
|
16.1% |
|
1.5% |
Top 20 Markets |
97 |
|
82.1% |
79.6% |
3.1% |
|
|
|
0.7% |
|
|
|
3.9% |
|
58.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Other Markets |
127 |
|
77.7% |
76.8% |
1.2% |
|
|
|
(0.3%) |
|
|
|
0.8% |
|
41.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Portfolio |
224 |
|
79.8% |
78.1% |
2.2% |
|
|
|
0.3% |
|
|
|
2.5% |
|
100.0% |
Note:
Market categorization based on STR designation. Top 20 markets based on |
Comparable Hotels Operating Metrics by Market
Six Months Ended (Unaudited) |
|||||||||||||||
Top 20 Markets |
|
|
Occupancy |
|
ADR |
|
RevPAR |
|
% of Adjusted
|
||||||
|
# of Hotels |
|
YTD 2024 |
YTD 2023 |
% Change |
|
YTD 2024 |
YTD 2023 |
% Change |
|
YTD 2024 |
YTD 2023 |
% Change |
|
YTD 2024 |
Top 20 Markets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10 |
|
84.8% |
83.6% |
1.4% |
|
|
|
(2.2%) |
|
|
|
(0.7%) |
|
7.3% |
|
7 |
|
76.4% |
76.6% |
(0.3%) |
|
|
|
1.1% |
|
|
|
0.8% |
|
5.2% |
|
8 |
|
84.8% |
83.5% |
1.6% |
|
|
|
(1.7%) |
|
|
|
(0.1%) |
|
4.9% |
|
5 |
|
79.5% |
77.4% |
2.7% |
|
|
|
4.4% |
|
|
|
7.3% |
|
3.9% |
|
6 |
|
77.8% |
77.4% |
0.5% |
|
|
|
(1.3%) |
|
|
|
(0.7%) |
|
3.3% |
|
6 |
|
84.7% |
82.2% |
3.0% |
|
|
|
0.1% |
|
|
|
3.2% |
|
3.3% |
Salt |
5 |
|
78.9% |
78.5% |
0.5% |
|
|
|
0.9% |
|
|
|
1.4% |
|
3.2% |
|
4 |
|
81.2% |
80.4% |
1.0% |
|
|
|
3.0% |
|
|
|
3.9% |
|
3.1% |
|
5 |
|
80.9% |
79.7% |
1.5% |
|
|
|
(5.0%) |
|
|
|
(3.5%) |
|
2.7% |
|
3 |
|
73.7% |
70.1% |
5.1% |
|
|
|
1.3% |
|
|
|
6.5% |
|
2.6% |
|
3 |
|
86.3% |
86.9% |
(0.7%) |
|
|
|
7.3% |
|
|
|
6.5% |
|
2.6% |
|
4 |
|
69.9% |
71.1% |
(1.7%) |
|
|
|
2.9% |
|
|
|
1.3% |
|
2.5% |
|
2 |
|
88.8% |
81.1% |
9.5% |
|
|
|
1.7% |
|
|
|
11.4% |
|
2.3% |
|
3 |
|
89.4% |
89.0% |
0.4% |
|
|
|
(1.3%) |
|
|
|
(0.9%) |
|
1.8% |
|
7 |
|
66.5% |
64.2% |
3.6% |
|
|
|
0.0% |
|
|
|
3.4% |
|
1.8% |
|
1 |
|
74.9% |
71.1% |
5.3% |
|
|
|
10.4% |
|
|
|
16.3% |
|
1.7% |
|
4 |
|
74.9% |
75.3% |
(0.5%) |
|
|
|
0.4% |
|
|
|
(0.1%) |
|
1.6% |
|
3 |
|
73.7% |
67.4% |
9.3% |
|
|
|
(5.8%) |
|
|
|
3.0% |
|
1.6% |
|
6 |
|
74.4% |
68.4% |
8.8% |
|
|
|
3.6% |
|
|
|
12.6% |
|
1.6% |
North |
4 |
|
72.9% |
76.1% |
(4.2%) |
|
|
|
(0.5%) |
|
|
|
(4.6%) |
|
1.6% |
Top 20 Markets |
96 |
|
78.3% |
76.8% |
2.0% |
|
|
|
0.4% |
|
|
|
2.5% |
|
58.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Other Markets |
128 |
|
73.8% |
73.7% |
0.1% |
|
|
|
(0.2%) |
|
|
|
(0.1%) |
|
41.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Portfolio |
224 |
|
76.0% |
75.2% |
1.1% |
|
|
|
0.2% |
|
|
|
1.2% |
|
100.0% |
Note:
Market categorization based on STR designation. Top 20 markets based on |
Comparable Hotels Operating Metrics by Region
Three Months Ended (Unaudited) |
|||||||||||||||
Region |
|
|
Occupancy |
|
ADR |
|
RevPAR |
|
% of Adjusted
|
||||||
|
# of Hotels |
|
Q2 2024 |
Q2 2023 |
% Change |
|
Q2 2024 |
Q2 2023 |
% Change |
|
Q2 2024 |
Q2 2023 |
% Change |
|
Q2 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East North Central |
17 |
|
73.7% |
69.7% |
5.7% |
|
|
|
2.2% |
|
|
|
8.0% |
|
6.4% |
East South Central |
27 |
|
81.6% |
80.5% |
1.4% |
|
|
|
(0.6%) |
|
|
|
0.7% |
|
10.5% |
Middle |
12 |
|
80.4% |
78.2% |
2.8% |
|
|
|
0.5% |
|
|
|
3.3% |
|
5.0% |
Mountain |
25 |
|
79.8% |
77.4% |
3.1% |
|
|
|
4.6% |
|
|
|
7.8% |
|
12.0% |
|
6 |
|
79.1% |
77.3% |
2.3% |
|
|
|
0.2% |
|
|
|
2.5% |
|
3.3% |
Pacific |
33 |
|
83.0% |
82.2% |
1.0% |
|
|
|
(1.0%) |
|
|
|
0.0% |
|
21.4% |
South |
53 |
|
80.1% |
80.0% |
0.1% |
|
|
|
(0.1%) |
|
|
|
0.0% |
|
23.6% |
West North Central |
17 |
|
75.3% |
74.5% |
1.1% |
|
|
|
0.8% |
|
|
|
1.9% |
|
6.9% |
West South Central |
34 |
|
80.2% |
76.3% |
5.1% |
|
|
|
(0.3%) |
|
|
|
4.9% |
|
10.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Portfolio |
224 |
|
79.8% |
78.1% |
2.2% |
|
|
|
0.3% |
|
|
|
2.5% |
|
100.0% |
Note: Region categorization based on STR designation. |
Comparable Hotels Operating Metrics by Region
Six Months Ended (Unaudited) |
|||||||||||||||
Region |
|
|
Occupancy |
|
ADR |
|
RevPAR |
|
% of Adjusted
|
||||||
|
# of Hotels |
|
YTD 2024 |
YTD 2023 |
% Change |
|
YTD 2024 |
YTD 2023 |
% Change |
|
YTD 2024 |
YTD 2023 |
% Change |
|
YTD 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
East North Central |
17 |
|
65.4% |
63.5% |
3.0% |
|
|
|
1.7% |
|
|
|
4.8% |
|
4.5% |
East South Central |
27 |
|
77.9% |
77.7% |
0.3% |
|
|
|
(0.3%) |
|
|
|
(0.1%) |
|
10.2% |
Middle |
12 |
|
72.2% |
71.8% |
0.6% |
|
|
|
1.7% |
|
|
|
2.4% |
|
4.1% |
Mountain |
25 |
|
79.6% |
78.9% |
0.9% |
|
|
|
0.6% |
|
|
|
1.5% |
|
15.9% |
|
6 |
|
70.7% |
66.3% |
6.6% |
|
|
|
(3.5%) |
|
|
|
2.9% |
|
2.4% |
Pacific |
33 |
|
79.7% |
78.6% |
1.4% |
|
|
|
(0.4%) |
|
|
|
1.0% |
|
21.1% |
South |
53 |
|
77.7% |
78.0% |
(0.4%) |
|
|
|
0.4% |
|
|
|
0.0% |
|
24.8% |
West North Central |
17 |
|
67.5% |
68.7% |
(1.7%) |
|
|
|
1.7% |
|
|
|
0.0% |
|
5.3% |
West South Central |
34 |
|
77.0% |
74.6% |
3.2% |
|
|
|
(0.3%) |
|
|
|
2.9% |
|
11.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Portfolio |
224 |
|
76.0% |
75.2% |
1.1% |
|
|
|
0.2% |
|
|
|
1.2% |
|
100.0% |
Note: Region categorization based on STR designation. |
Comparable Hotels Operating Metrics by Chain Scale
Three Months Ended (Unaudited) |
|||||||||||||||
Chain Scale/Brand |
|
|
Occupancy |
|
ADR |
|
RevPAR |
|
% of Adjusted
|
||||||
|
# of Hotels |
|
Q2 2024 |
Q2 2023 |
% Change |
|
Q2 2024 |
Q2 2023 |
% Change |
|
Q2 2024 |
Q2 2023 |
% Change |
|
Q2 2024 |
Upscale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4 |
|
86.2% |
82.7% |
4.2% |
|
|
|
2.4% |
|
|
|
6.7% |
|
5.7% |
Aloft |
1 |
|
71.1% |
79.5% |
(10.6%) |
|
|
|
7.5% |
|
|
|
(3.9%) |
|
0.4% |
Courtyard |
35 |
|
78.1% |
77.4% |
0.9% |
|
|
|
1.3% |
|
|
|
2.1% |
|
19.1% |
|
40 |
|
77.6% |
75.3% |
3.1% |
|
|
|
(1.7%) |
|
|
|
1.3% |
|
16.5% |
Homewood Suites |
29 |
|
85.7% |
83.8% |
2.3% |
|
|
|
0.6% |
|
|
|
3.0% |
|
10.3% |
Hyatt House |
2 |
|
76.9% |
77.7% |
(1.0%) |
|
|
|
3.2% |
|
|
|
2.2% |
|
0.9% |
|
3 |
|
79.3% |
75.9% |
4.5% |
|
|
|
0.0% |
|
|
|
4.5% |
|
0.9% |
|
30 |
|
82.6% |
80.7% |
2.4% |
|
|
|
1.1% |
|
|
|
3.4% |
|
13.9% |
SpringHill Suites |
9 |
|
77.7% |
76.3% |
1.8% |
|
|
|
4.3% |
|
|
|
6.2% |
|
4.4% |
Upscale Total |
153 |
|
80.2% |
78.5% |
2.2% |
|
|
|
0.7% |
|
|
|
2.8% |
|
72.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upper Midscale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10 |
|
74.2% |
72.9% |
1.8% |
|
|
|
(1.8%) |
|
|
|
0.0% |
|
2.2% |
|
36 |
|
78.5% |
76.5% |
2.6% |
|
|
|
(0.5%) |
|
|
|
2.1% |
|
14.1% |
Home2 Suites |
10 |
|
85.1% |
86.2% |
(1.3%) |
|
|
|
(1.4%) |
|
|
|
(2.7%) |
|
4.6% |
TownePlace Suites |
9 |
|
82.1% |
81.9% |
0.2% |
|
|
|
0.3% |
|
|
|
0.5% |
|
2.5% |
Upper Midscale Total |
65 |
|
79.2% |
78.0% |
1.5% |
|
|
|
(0.7%) |
|
|
|
0.8% |
|
23.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upper Upscale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4 |
|
81.0% |
80.9% |
0.1% |
|
|
|
0.0% |
|
|
|
0.2% |
|
2.7% |
Marriott |
2 |
|
74.2% |
64.6% |
14.9% |
|
|
|
(2.0%) |
|
|
|
12.4% |
|
1.8% |
Upper Upscale Total |
6 |
|
77.4% |
72.0% |
7.5% |
|
|
|
(1.4%) |
|
|
|
6.1% |
|
4.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Portfolio |
224 |
|
79.8% |
78.1% |
2.2% |
|
|
|
0.3% |
|
|
|
2.5% |
|
100.0% |
Note: Chain scale categorization based on STR designation. |
Comparable Hotels Operating Metrics by Chain Scale
Six Months Ended (Unaudited) |
|||||||||||||||
Chain Scale/Brand |
|
|
Occupancy |
|
ADR |
|
RevPAR |
|
% of Adjusted
|
||||||
|
# of Hotels |
|
YTD 2024 |
YTD 2023 |
% Change |
|
YTD 2024 |
YTD 2023 |
% Change |
|
YTD 2024 |
YTD 2023 |
% Change |
|
YTD 2024 |
Upscale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4 |
|
78.2% |
75.1% |
4.1% |
|
|
|
2.7% |
|
|
|
6.9% |
|
4.7% |
Aloft |
1 |
|
64.4% |
63.1% |
2.1% |
|
|
|
(0.7%) |
|
|
|
1.3% |
|
0.3% |
Courtyard |
35 |
|
73.2% |
72.9% |
0.4% |
|
|
|
1.4% |
|
|
|
1.9% |
|
18.1% |
|
40 |
|
72.7% |
72.3% |
0.6% |
|
|
|
(1.8%) |
|
|
|
(1.3%) |
|
15.6% |
Homewood Suites |
29 |
|
82.6% |
82.3% |
0.4% |
|
|
|
1.1% |
|
|
|
1.5% |
|
11.0% |
Hyatt House |
2 |
|
80.3% |
79.5% |
1.0% |
|
|
|
(3.1%) |
|
|
|
(2.2%) |
|
1.2% |
|
3 |
|
83.2% |
80.1% |
3.9% |
|
|
|
(3.1%) |
|
|
|
0.7% |
|
1.4% |
|
30 |
|
78.7% |
77.2% |
1.9% |
|
|
|
1.0% |
|
|
|
3.0% |
|
14.2% |
SpringHill Suites |
9 |
|
75.6% |
74.4% |
1.6% |
|
|
|
3.9% |
|
|
|
5.5% |
|
5.0% |
Upscale Total |
153 |
|
76.1% |
75.3% |
1.1% |
|
|
|
0.6% |
|
|
|
1.6% |
|
71.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upper Midscale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10 |
|
71.4% |
71.1% |
0.4% |
|
|
|
(2.4%) |
|
|
|
(1.9%) |
|
2.4% |
|
36 |
|
74.1% |
73.2% |
1.2% |
|
|
|
(1.4%) |
|
|
|
(0.1%) |
|
14.0% |
Home2 Suites |
10 |
|
82.4% |
84.7% |
(2.7%) |
|
|
|
0.3% |
|
|
|
(2.4%) |
|
4.8% |
TownePlace Suites |
9 |
|
80.2% |
79.4% |
1.0% |
|
|
|
0.5% |
|
|
|
1.4% |
|
2.8% |
Upper Midscale Total |
65 |
|
75.6% |
75.2% |
0.5% |
|
|
|
(1.1%) |
|
|
|
(0.6%) |
|
24.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upper Upscale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4 |
|
81.0% |
81.9% |
(1.1%) |
|
|
|
1.4% |
|
|
|
0.3% |
|
2.6% |
Marriott |
2 |
|
71.1% |
62.9% |
13.0% |
|
|
|
(0.5%) |
|
|
|
12.5% |
|
1.9% |
Upper Upscale Total |
6 |
|
75.6% |
71.5% |
5.7% |
|
|
|
0.1% |
|
|
|
5.9% |
|
4.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Portfolio |
224 |
|
76.0% |
75.2% |
1.1% |
|
|
|
0.2% |
|
|
|
1.2% |
|
100.0% |
Note: Chain scale categorization based on STR designation. |
Comparable Hotels Operating Metrics by Location
Three Months Ended (Unaudited) |
|||||||||||||||
Location |
|
|
Occupancy |
|
ADR |
|
RevPAR |
|
% of Adjusted
|
||||||
|
# of Hotels |
|
Q2 2024 |
Q2 2023 |
% Change |
|
Q2 2024 |
Q2 2023 |
% Change |
|
Q2 2024 |
Q2 2023 |
% Change |
|
Q2 2024 |
STR Location |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Airport |
18 |
|
82.7% |
80.6% |
2.6% |
|
|
|
1.1% |
|
|
|
3.7% |
|
6.1% |
Interstate |
4 |
|
79.8% |
74.4% |
7.3% |
|
|
|
(1.5%) |
|
|
|
5.6% |
|
0.9% |
Resort |
11 |
|
77.0% |
77.9% |
(1.2%) |
|
|
|
0.9% |
|
|
|
(0.4%) |
|
5.4% |
Small Metro/Town |
9 |
|
86.6% |
81.5% |
6.3% |
|
|
|
8.1% |
|
|
|
15.0% |
|
3.4% |
Suburban |
127 |
|
79.8% |
78.0% |
2.3% |
|
|
|
(0.1%) |
|
|
|
2.3% |
|
48.2% |
Urban |
55 |
|
78.7% |
77.6% |
1.4% |
|
|
|
0.2% |
|
|
|
1.7% |
|
36.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Portfolio |
224 |
|
79.8% |
78.1% |
2.2% |
|
|
|
0.3% |
|
|
|
2.5% |
|
100.0% |
Note: Location categorization based on STR designation. |
Comparable Hotels Operating Metrics by Location
Six Months Ended (Unaudited) |
|||||||||||||||
Location |
|
|
Occupancy |
|
ADR |
|
RevPAR |
|
% of Adjusted
|
||||||
|
# of Hotels |
|
YTD 2024 |
YTD 2023 |
% Change |
|
YTD 2024 |
YTD 2023 |
% Change |
|
YTD 2024 |
YTD 2023 |
% Change |
|
YTD 2024 |
STR Location |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Airport |
18 |
|
81.4% |
81.1% |
0.4% |
|
|
|
(0.1%) |
|
|
|
0.2% |
|
7.4% |
Interstate |
4 |
|
74.3% |
69.8% |
6.4% |
|
|
|
1.1% |
|
|
|
7.6% |
|
0.9% |
Resort |
11 |
|
76.1% |
77.5% |
(1.8%) |
|
|
|
0.9% |
|
|
|
(0.9%) |
|
6.3% |
Small Metro/Town |
9 |
|
85.6% |
81.7% |
4.8% |
|
|
|
1.6% |
|
|
|
6.5% |
|
4.5% |
Suburban |
127 |
|
75.4% |
74.9% |
0.7% |
|
|
|
0.4% |
|
|
|
1.1% |
|
47.3% |
Urban |
55 |
|
74.4% |
73.1% |
1.8% |
|
|
|
(0.4%) |
|
|
|
1.4% |
|
33.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Portfolio |
224 |
|
76.0% |
75.2% |
1.1% |
|
|
|
0.2% |
|
|
|
1.2% |
|
100.0% |
Note: Location categorization based on STR designation. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240804000719/en/
804-727-6321
kclarke@applereit.com
Source: