Apple Hospitality REIT Reports Q1 2026 Financial Results with Revenue Increase and Net Income Decline

Apple Hospitality REIT, Inc. reported its financial results for the first quarter of 2026, revealing total revenues of $337.7 million, a 3.2% increase from $327.7 million in the same period last year. The company's net income for the quarter was $27.7 million, down from $31.2 million in the prior year, resulting in a basic and diluted net income per share of $0.12, compared to $0.13 in the first quarter of 2025. The decline in net income was attributed to increased operating expenses, which rose to $206.9 million from $199.9 million, primarily driven by higher occupancy levels and inflationary pressures.

In terms of operational metrics, the company reported an average occupancy rate of 72.8%, up from 71.1% a year earlier, while the average daily rate (ADR) increased slightly to $157.19 from $156.24. Revenue per available room (RevPAR) also saw a 3.1% increase, reaching $114.43 compared to $111.04 in the previous year. The company owned 217 hotels with a total of 29,583 guest rooms as of March 31, 2026, including one hotel classified as held for sale, which was sold in April 2026.

Strategically, Apple Hospitality did not acquire any new properties during the first quarter but has a contract for a potential purchase of a hotel in Anchorage, Alaska, for approximately $65.5 million, expected to be completed in late 2027. The company also continues to develop a dual-branded property in Las Vegas, with an estimated total investment of $143.7 million. The company’s management has transitioned several hotels to different third-party management companies to enhance operational efficiency.

Financially, Apple Hospitality's total debt as of March 31, 2026, stood at $1.6 billion, with $182.7 million in mortgage debt and $1.4 billion under unsecured credit facilities. The company had approximately $7.8 million in cash and $558.8 million available under its revolving credit facility. The company declared a monthly cash distribution of $0.08 per common share, totaling $56.6 million for the quarter, down from $69.6 million in the same period last year. Looking ahead, the company anticipates that RevPAR will modestly exceed 2025 levels, assuming stable macroeconomic conditions, while continuing to monitor operational efficiencies and cost pressures.