Apple Hospitality REIT Reports Q2 2025 Revenue Decline to $384.4 Million

Apple Hospitality REIT, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $384.4 million, a decrease of 1.8% from $390.1 million in the same quarter of 2024. For the first half of 2025, the company generated $712.1 million in revenue, down from $719.6 million year-over-year. The net income for the quarter was $63.6 million, compared to $73.9 million in the prior year, marking a decline of 13.9%. The company attributed the revenue drop to reduced occupancy rates and challenges in the macroeconomic environment, including inflation and decreased government travel.

In terms of operational metrics, the average daily rate (ADR) for the quarter was $163.56, a slight increase from $162.98 in the previous year, while occupancy rates fell to 78.6% from 79.8%. Revenue per available room (RevPAR) also saw a decline, dropping to $128.59 from $130.07. The company owned 221 hotels with a total of 29,893 guest rooms as of June 30, 2025, a reduction from 224 hotels and 30,068 rooms a year earlier. The company sold two hotels during the first half of 2025 for a combined gross sales price of approximately $21 million, resulting in a gain of $3.6 million.

Apple Hospitality REIT made strategic moves during the quarter, including the acquisition of a Homewood Suites hotel in Tampa, Florida, for approximately $18.8 million. The company also entered into a purchase agreement for a hotel in Nashville, Tennessee, expected to cost around $98.2 million, although the closing is contingent on several conditions. The company continues to focus on optimizing its portfolio and enhancing shareholder value through strategic acquisitions and dispositions.

Financially, the company reported total liabilities of $1.73 billion as of June 30, 2025, an increase from $1.70 billion at the end of 2024. The company’s total debt stood at $1.53 billion, with a weighted average interest rate of 5.02%. The company has a robust liquidity position, with approximately $7.9 million in cash and $474.9 million available under its revolving credit facility. In July 2025, Apple Hospitality REIT repaid its $225 million term loan facility and entered into a new $385 million term loan with a maturity date of July 31, 2030.

Looking ahead, Apple Hospitality REIT anticipates continued challenges in the operating environment, particularly concerning occupancy and revenue growth. The company expects RevPAR for its comparable hotels to improve moderately, although it projects that overall RevPAR for 2025 may be slightly lower than in 2024. The company remains committed to maintaining its distribution rate of $0.08 per share, with a total distribution of $126.7 million paid in the first half of 2025.