Apple Hospitality REIT shares rose 6.5% post-earnings, reflecting investor approval of the company’s raised RevPAR guidance and margin expansion despite a cautious outlook on macroeconomic and geopolitical risks.
- Comparable hotels’ RevPAR increased more than 2% year-over-year, with about two-thirds of hotels showing growth and same-store RevPAR up nearly 3%.
- Operating efficiencies contributed to margin expansion and growth across adjusted hotel EBITDA, adjusted EBITDAre, and modified funds from operations.
- Full-year RevPAR guidance was raised 100 basis points to a midpoint of 1%, citing stronger-than-anticipated transient demand and potential upside from leisure travel tied to the FIFA World Cup.
- Capital expenditures totaled $27.5 million for the quarter, with $80-90 million expected for the full year, including renovations at 21 hotels to maintain competitiveness.
- Portfolio pruning continues with the recent sale of a hotel at a 5% cap rate, while acquisitions are on hold awaiting more favorable transaction environments.
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