Apple Hospitality REIT, Inc. reported its financial results for the first quarter of 2025, revealing total revenues of $327.7 million, a slight decrease of 0.5% from $329.5 million in the same period of 2024. The company's net income also fell significantly, dropping to $31.2 million from $54.1 million year-over-year, reflecting a 42.2% decline. The basic and diluted net income per common share decreased to $0.13 from $0.22 in the prior year. The decline in profitability was attributed to increased hotel operating expenses, which rose to $199.9 million, accounting for 61% of total revenue, compared to 59.9% in the previous year.
In terms of operational metrics, the company owned 219 hotels with a total of 29,558 guest rooms as of March 31, 2025, down from 224 hotels and 29,886 guest rooms a year earlier. The average daily rate (ADR) increased by 2.0% to $156.24, while occupancy rates decreased slightly to 71.1% from 72.0%. Revenue per available room (RevPAR) showed a marginal increase of 0.7%, reaching $111.04, driven by higher ADR despite the drop in occupancy.
Strategically, Apple Hospitality did not acquire any new properties during the quarter but sold two hotels for a combined gross sales price of approximately $21 million, resulting in a gain of about $3.6 million. The company has ongoing contracts for the potential purchase of two hotels, with a total expected price of $117 million, including one hotel in Tampa, Florida, and another under development in Nashville, Tennessee. The Nashville property is anticipated to open in late 2025.
The company’s financial position remains stable, with total outstanding debt of approximately $1.5 billion as of March 31, 2025, which includes $252.3 million in mortgage debt and $1.3 billion under unsecured credit facilities. The company had approximately $14.9 million in cash and $500.2 million available under its revolving credit facility. Looking ahead, Apple Hospitality expects to maintain its monthly cash distribution of $0.08 per common share, with plans to continue monitoring market conditions and operational efficiencies to navigate potential economic challenges.
About Apple Hospitality REIT, Inc.
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