Apple Hospitality REIT, Inc.

Apple Hospitality REIT, Inc. is a self-advised U.S. real estate investment trust that owns income-producing hotels, primarily in the upscale lodging sector. The portfolio is concentrated in rooms-focused hotels operating under Marriott and Hilton brands, with properties spread across urban, high-end suburban, and developing markets. As of year-end 2025, the company owned 217 hotels with 29,583 guest rooms across 37 states and the District of Columbia. Its business model is to generate cash flow from hotel operations and use that cash to support shareholder distributions, selective acquisitions, and ongoing property reinvestment.

31,9 %

40,0 %

12,4 %

−1,3 %

— Apple Hospitality REIT, Inc.
%
Hotel ownership and operations92% Fee-simple ownership of income-producing hotels operated by third-party managers under franchise brands.
Room revenue82% Revenue from guest room rentals, the core driver of occupancy, ADR, and RevPAR.
Food and beverage8% Hotel dining, breakfast, banquet, and related food-service revenue generated on-property.
Other hotel services2% Parking, meeting space, and other ancillary hotel-related revenue streams.
Capital allocation and asset management8% Selective acquisitions, dispositions, and reinvestment to maintain property competitiveness.

Apple Hospitality’s direct customers are hotel guests rather than long-term contract buyers, so demand is driven by...

  • Business travelersprimary

    Corporate and road-warrior guests who value location, brand consistency, and loyalty-program access.

  • Leisure travelersprimary

    Vacation and weekend guests who drive demand in urban and suburban markets, especially in peak seasons.

  • Government travelerssecondary

    Federal, state, and local government guests that support occupancy in certain markets but can fluctuate with policy and budget conditions.

  • Group and meeting guestssecondary

    Travelers attending events, meetings, and small conferences that generate room nights and ancillary spend.

  • Online travel channel guestssecondary

    Guests acquired through third-party intermediaries, important for occupancy but typically lower-margin after fees.

Apple Hospitality’s business is almost entirely U.S.-based, with no foreign operations or assets...

  • •All revenue and assets are in the United States; no foreign operations or assets
  • •Portfolio spans 37 states and the District of Columbia
  • •Exposure is diversified across urban, suburban, and developing markets
  • •Local hotel supply growth and demand trends affect occupancy and pricing
  • •U.S. macro conditions, travel patterns, and government travel influence results
  • •Geographic diversification reduces dependence on any single city or state

The company’s strategy is centered on disciplined capital allocation in upscale, rooms-focused hotels that can generate...

01
Reinvest in the existing hotel portfolioshort-term

Renovations and capital improvements help maintain brand compliance, guest satisfaction, and competitive positioning.

02
Maintain a diversified, branded hotel portfoliomedium-term

Diversification across markets and strong franchise brands reduces dependence on any single property or demand source.

03
Preserve balance-sheet flexibilitymedium-term

Low leverage supports resilience during travel downturns and allows opportunistic capital allocation.

Apple Hospitality is exposed to the cyclical and highly competitive hotel industry, where occupancy and room rates can...

high

Hotel demand downturn

Occupancy and ADR depend on travel activity, which weakens during economic slowdowns, weather disruptions, or government travel reductions.

Scope
Portfolio-wide U.S. hotel operations
Materiality
high
high

Competitive supply growth

New hotel openings or alternative lodging options can reduce occupancy and pricing power in specific markets.

Scope
Local market performance
Materiality
high
high

Capital expenditure inflation

Renovations and maintenance are recurring and can become more expensive due to inflation, tariffs, or supply shortages.

Scope
Property reinvestment program
Materiality
high
medium

Lower-margin distribution mix

Rooms sold through non-franchisor channels generally carry higher fees and lower profitability.

Scope
Revenue mix and channel economics
Materiality
medium
medium

Cybersecurity and third-party service disruption

The company depends on hotel managers, franchisors, cloud providers, and other vendors for critical systems and guest data handling.

Scope
Operations, guest data, and reservations systems
Materiality
medium
Seasonality in hotel revenue
Quarterly comparability and cash flow planning
Capital expenditure and reserve accounting
Cash flow, maintenance capex, and liquidity
Non-GAAP performance measures
Valuation and operating trend analysis
Related-party transactions
Expense comparability and governance assessment
Share-based compensation
Reported compensation expense and adjusted metrics

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: 11/08/2026