Apple Hospitality REIT, Inc. reported its financial results for the third quarter of 2025, revealing total revenues of $373.9 million, a decrease of 1.3% from $378.8 million in the same period last year. For the nine months ended September 30, 2025, total revenue remained stable at approximately $1.1 billion, consistent with the previous year. The company’s net income for the quarter was $50.9 million, down 9.6% from $56.3 million in the prior year, while net income for the nine-month period fell 20.9% to $145.7 million from $184.2 million in 2024. Basic and diluted net income per common share was $0.21 for the quarter, compared to $0.23 in the same quarter of 2024.
The company experienced a slight decline in key operational metrics, with average occupancy rates dropping to 76.2% from 77.1% year-over-year, and revenue per available room (RevPAR) decreasing to $124.01 from $126.29. The decline in revenue was attributed to reduced government and business transient travel, as well as heightened macroeconomic uncertainty affecting overall lodging demand. In response to these challenges, Apple Hospitality REIT has focused on maintaining operational efficiency and managing costs, with hotel operating expenses rising slightly to $222.0 million, or 59.4% of total revenue, compared to 58.1% in the prior year.
Strategically, Apple Hospitality REIT acquired one hotel during the nine months ended September 30, 2025, a Homewood Suites in Tampa, Florida, for approximately $18.8 million. The company also sold three hotels for a combined gross sales price of $37.0 million, resulting in a gain of approximately $7.9 million. As of September 30, 2025, the company owned 220 hotels with a total of 29,687 guest rooms across 37 states and the District of Columbia, including four hotels classified as held for sale, expected to be sold in the fourth quarter of 2025.
Looking ahead, Apple Hospitality REIT has contracts for the potential purchase of two hotels under development in Nashville, Tennessee, and Anchorage, Alaska, with a combined purchase price of approximately $163.7 million. The company anticipates completing the Nashville property in December 2025 and the Anchorage property in late 2027. Additionally, the company is developing a dual-branded property in Las Vegas, expected to open in 2028. The company remains committed to its strategy of maximizing shareholder value through strategic acquisitions and operational efficiencies, while navigating the current economic landscape.
About Apple Hospitality REIT, Inc.
Apple Hospitality REIT, Inc. is a self-advised real estate investment trust focused on owning and investing in income-producing, rooms-focused hotels across the United States. Its portfolio primarily consists of upscale and upper midscale hotels operated under leading Marriott and Hilton brands. The company leverages geographic and brand diversification, third-party management agreements, and proactive asset management to maximize long-term shareholder value through stable cash distributions and capital appreciation.
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