- RevPAR Decline: Full-year 2025 comparable hotels RevPAR was $118, down 1.6% YoY, with January 2026 showing a 1.5% decline YoY due to weather disruptions and comp challenges.
- Capital Allocation: Sold 7 hotels for $73M and repurchased 4.6M shares for $58M in 2025, reflecting disciplined asset management and shareholder return strategies.
- Franchise Transition: Transitioned 13 Marriott-managed hotels to franchise, consolidating third-party management to enhance operational efficiency and synergies.
- EBITDA Decline: 2025 adjusted hotel EBITDA fell to $474M (-8.6% YoY), driven by lower RevPAR and operating expenses, with EBITDA margin at 34.3% (-190 bps YoY).
- 2026 Guidance: Projects flat RevPAR growth (±1%) and EBITDA margin of 32.4–33.4%, citing FIFA World Cup tailwinds and easier comps from 2025 disruptions.
Operational Highlights
The company's comparable hotels RevPAR was $107 for the fourth quarter, down 2.6% year-over-year. Average daily rate (ADR) was $152, down 90 basis points, and occupancy was 70%, down 1.7% compared to the fourth quarter of 2024. For the full year 2025, comparable hotels RevPAR was $118, down 1.6% year-over-year. The company's portfolio continues to outperform the industry, with STR reporting RevPAR of $100 and average occupancy of 62% for 2025.
Guidance and Outlook
Apple Hospitality REIT expects comparable hotels RevPAR to be flat at the midpoint in 2026, with net income between $133 million and $160 million. The company expects adjusted EBITDAre to be between $424 million and $447 million, with adjusted hotel EBITDA margin between 32.4% and 33.4%. The company is optimistic about its outlook for 2026, citing potential benefits from the FIFA World Cup and easier comparisons to periods affected by government spending cuts and the government shutdown in late 2025.
Valuation and Metrics
With a P/E Ratio of 16.48 and a Dividend Yield of 7.9%, Apple Hospitality REIT appears to be reasonably valued. The company's ROE of 5.5% and ROIC of 5.13% indicate a stable return profile. The Net Debt / EBITDA ratio of 4.03 suggests a manageable debt burden. Analysts estimate revenue growth of 2.4% for the next year, which, combined with the company's current valuation metrics, suggests a stable outlook.