Apple Hospitality (APLE) Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Tue, February 24, 2026 astatine 11:41 AM CST 39 min read

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Tuesday, Feb. 24, 2026 astatine 11:00 a.m. ET

• Chief Executive Officer — Justin G. Knight

• Chief Financial Officer — Elizabeth S. Perkins

This morning, Justin G. Knight, our Chief Executive Officer, and Elizabeth S. Perkins, our Chief Financial Officer, volition supply an overview of our results for the 4th fourth and afloat twelvemonth 2025 and an operational outlook for 2026. Following the overview, we volition unfastened the telephone for Q&A. At this time, it is my pleasance to crook the telephone implicit to Justin.

Justin G. Knight: Good morning, and convey you for joining america contiguous for our 4th fourth and afloat twelvemonth 2025 net call. Against the challenging backdrop successful 2025, our firm absorption and edifice teams skillfully executed against strategical initiatives to maximize operating performance, negociate expenses, capitalize connected dislocations successful the banal market, optimize our existing portfolio, heighten our maturation profile, and presumption the Company to maximize shareholder worth done outperformance successful the years ahead. Our portfolio of efficient, precocious prime hotels is broadly diversified crossed 84 markets, with vulnerability to a assortment of request generators.

During the year, leisure question remained beardown crossed our edifice portfolio portion argumentation uncertainty and a pullback successful authorities question impacted midweek demand, temporarily disrupting the dependable betterment successful midweek occupancy that characterized overmuch of 2024. Our plus absorption and edifice teams adjusted strategy to optimize the premix of concern astatine our hotels arsenic request trends shifted, successful galore cases layering connected further radical concern to bolster marketplace stock and fortify wide performance.

Portfolio performance. Through the palmy navigation of changes successful authorities babelike demand, combined with continued spot successful leisure travel, we achieved comparable hotels RevPAR of $118 for the afloat twelvemonth 2025, down 1.6% to the anterior year. Based connected preliminary results, comparable hotels RevPAR declined by astir 1.5% successful January 2026 arsenic compared to January 2025, chiefly arsenic a effect of challenging comps related to wildfire betterment related business, which benefited a fig of our California hotels past year, and the statesmanlike inauguration, which benefited our hotels successful the Washington, D.C. area. Winter storms besides weighed connected January and aboriginal February results but occupancies person improved meaningfully with caller weeks showing important year-over-year growth.

Together with our absorption teams, we stay focused connected ensuring that we are increasing marketplace stock and prudently managing expenses to maximize the profitability of our hotels. Variable disbursal maturation for our portfolio has moderated, with higher maturation successful fixed costs during 2025 mostly coming arsenic a effect of challenging year-over-year comparisons. We achieved comparable hotels EBITDA of $99,000,000 for the 4th and $474,000,000 for the year, resulting successful an manufacture starring comparable hotels EBITDA borderline of 31.1% for the 4th and 34.3% for the year.