Third quarter 2026
Filed Nov 5, 2026Apple Hospitality reported third-quarter growth in Comparable Hotels RevPAR, Adjusted EBITDAre, MFFO and net income, and raised its full-year 2026 outlook.
Comparable Hotels RevPAR increased 7.3%, Comparable Hotels Adjusted Hotel EBITDA increased 14.7%, Adjusted EBITDAre increased 13.3%, and net income increased 18.9%. The Company raised full-year guidance for net income, Comparable Hotels RevPAR Change, Comparable Hotels Adjusted Hotel EBITDA Margin % and Adjusted EBITDAre.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30, 2026GAAP | $398.3M | – | – |
| Room revenue, three months ended September 30, 2026GAAP | $362.0M | – | – |
| Food and beverage revenue, three months ended September 30, 2026GAAP | $16.72M | – | – |
| Other revenue, three months ended September 30, 2026GAAP | $19.58M | – | – |
| Total hotel operating expense, three months ended September 30, 2026GAAP | $229.5M | – | – |
| Property taxes, insurance and other, three months ended September 30, 2026GAAP | $21.62M | – | – |
| General and administrative, three months ended September 30, 2026GAAP | $10.91M | – | – |
| Impairment of depreciable real estate, three months ended September 30, 2026GAAP | $4.32M | – | – |
| Depreciation and amortization, three months ended September 30, 2026GAAP | $49.81M | – | – |
| Operating income, three months ended September 30, 2026GAAP | $82.20M | – | 13.4% |
| Operating margin, three months ended September 30, 2026GAAP | 20.6% | – | 120 bps |
| Net income, three months ended September 30, 2026GAAP | $60.47M | – | 18.9% |
| Basic and diluted net income per common share, three months ended September 30, 2026GAAP | $0.26 | – | 23.8% |
| Adjusted EBITDAre, three months ended September 30, 2026non-GAAP | $139.7M | – | 13.3% |
| Adjusted Hotel EBITDA, three months ended September 30, 2026non-GAAP | $147.4M | – | 13.7% |
| Comparable Hotels Total Revenue, three months ended September 30, 2026non-GAAP | $393.6M | – | 8.2% |
| Comparable Hotels Total Operating Expenses, three months ended September 30, 2026non-GAAP | $247.7M | – | 4.7% |
| Comparable Hotels Adjusted Hotel EBITDA, three months ended September 30, 2026non-GAAP | $145.9M | – | 14.7% |
| Comparable Hotels Adjusted Hotel EBITDA Margin, three months ended September 30, 2026non-GAAP | 37.1% | – | 210 bps |
| Modified funds from operations, three months ended September 30, 2026non-GAAP | $118.0M | – | 16.0% |
| MFFO per share, three months ended September 30, 2026non-GAAP | $0.50 | – | 16.3% |
| ADR, actual, three months ended September 30, 2026other | $170.25 | – | 4.6% |
| Occupancy, actual, three months ended September 30, 2026other | 78.5% | – | 3.0% |
| RevPAR, actual, three months ended September 30, 2026other | $133.58 | – | 7.7% |
| Comparable Hotels ADR, three months ended September 30, 2026other | $170.53 | – | 4.3% |
| Comparable Hotels Occupancy, three months ended September 30, 2026other | 78.3% | – | 2.8% |
| Comparable Hotels RevPAR, three months ended September 30, 2026other | $133.60 | – | 7.3% |
| Total revenue, nine months ended September 30, 2026GAAP | $1.14B | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $218.4M | – | 4.9% |
| Net income, nine months ended September 30, 2026GAAP | $155.2M | – | 6.5% |
| Basic and diluted net income per common share, nine months ended September 30, 2026GAAP | $0.66 | – | 8.2% |
| Adjusted EBITDAre, nine months ended September 30, 2026non-GAAP | $384.8M | – | 8.0% |
| Modified funds from operations, nine months ended September 30, 2026non-GAAP | $321.6M | – | 9.5% |
| MFFO per share, nine months ended September 30, 2026non-GAAP | $1.36 | – | 10.6% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Room revenueReported as room revenue for the three months ended September 30, 2026. | $362.0M | – | – |
| Food and beverage revenueReported as food and beverage revenue for the three months ended September 30, 2026. | $16.72M | – | – |
| Other revenueReported as other revenue for the three months ended September 30, 2026. | $19.58M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Year ending December 31, 2026 outlook
- NoteNet income: $177 Million to $192 Million
- NoteComparable Hotels RevPAR Change: 5.1% to 6.1%
- NoteComparable Hotels Adjusted Hotel EBITDA Margin %: 35.0% to 35.5%
- NoteAdjusted EBITDAre: $482 Million to $493 Million
- NoteCapital expenditures: $85 Million to $95 Million
- NoteComparable Hotels Adjusted Hotel EBITDA: $508,500 (in thousands) to $521,000 (in thousands)
- NoteNet income reconciliation range: $177,372 (in thousands) to $192,472 (in thousands)
- NoteAdjusted EBITDAre reconciliation range: $481,969 (in thousands) to $493,469 (in thousands)
Capital returns
- Distributions paid during the three months ended September 30, 2026: $56,618 (in thousands), or $0.24 per common share.
- The current annualized regular monthly cash distribution was $0.96 per common share.
- The Company did not repurchase any common shares under the Share Repurchase Program during the three and nine months ended September 30, 2026.
- Approximately $242.5 million remained under the Share Repurchase Program as of September 30, 2026.
- No shares were sold under the ATM Program during the three and nine months ended September 30, 2026.
- $500 million remained under the ATM Program as of September 30, 2026.
What drove it
- Comparable Hotels ADR increased 4.3% and Comparable Hotels Occupancy increased 2.8%, producing 7.3% Comparable Hotels RevPAR growth.
- Comparable Hotels Total Revenue increased 8.2%, while Comparable Hotels Total Operating Expenses increased 4.7%.
- Comparable Hotels Adjusted Hotel EBITDA Margin expanded 210 bps to 37.1%.
- Management cited broad-based demand from business and leisure travelers.
- Preliminary October 2026 results indicated Comparable Hotels RevPAR growth of approximately 10% as compared to October 2025.
- The Company cited favorable comparisons to prior periods impacted by government-related disruptions.
Concerns
- The Company recognized an impairment loss of approximately $4.3 million in the third quarter 2026 with respect to one hotel under contract for sale.
- Five hotels were under contract for sale for a combined gross sales price of $71.8 million, subject to conditions to closing.
- The Company expects to invest approximately $85 million to $95 million in capital improvements during 2026.
- Guidance excludes unannounced hotel acquisitions or dispositions and does not take into account unanticipated developments or changes in the operating environment.
What to watch
- Comparable Hotels RevPAR performance during the fourth quarter following preliminary October growth of approximately 10%.
- Execution and closing of the five hotel dispositions expected in the fourth quarter 2026.
- Capital improvement spending against the $85 million to $95 million 2026 outlook.
- Redeployment of disposition proceeds into hotel investments.
- Delivery of the full-year 2026 guidance ranges for net income, Comparable Hotels RevPAR Change, Comparable Hotels Adjusted Hotel EBITDA Margin % and Adjusted EBITDAre.
Balance sheet and cash flow
- Cash and cash equivalents were $42,674 (in thousands) as of September 30, 2026, compared with $8,515 (in thousands) as of December 31, 2025.
- Total debt outstanding was $1,490,262 (in thousands) as of September 30, 2026.
- Total debt outstanding, net of cash and cash equivalents, was $1,447,588 (in thousands).
- Total debt outstanding, net of cash and cash equivalents, to total capitalization was 27.5%.
- Debt, net was $1,479,113 (in thousands) as of September 30, 2026, compared with $1,538,584 (in thousands) as of December 31, 2025.
- Availability under the revolving credit facility was approximately $700 million as of September 30, 2026.
- The current combined weighted-average interest rate was approximately 4.9%, and weighted-average debt maturities were approximately 4.5 years.
- During the nine months ended September 30, 2026, the Company invested approximately $58 million in capital expenditures.
- Subsequent to quarter-end, the Company repaid in full one mortgage loan for approximately $49.6 million, bringing unencumbered hotels to 210 as of October 31, 2026.
Analysis
Apple Hospitality produced broad operating improvement in the third quarter. Total revenue was $398,332 (in thousands), versus $373,878 (in thousands) in the prior-year quarter. Comparable Hotels RevPAR increased 7.3% to $133.60, supported by a 4.3% increase in ADR to $170.53 and a 2.8% increase in occupancy to 78.3%. The Company reported that Comparable Hotels ADR, Occupancy and RevPAR exceeded industry averages as reported by STR.
The topline gain translated into stronger profitability. Comparable Hotels Total Revenue increased 8.2%, while Comparable Hotels Total Operating Expenses increased 4.7%, resulting in 210 bps of Comparable Hotels Adjusted Hotel EBITDA Margin expansion to 37.1%. Comparable Hotels Adjusted Hotel EBITDA increased 14.7% to $145,857 (in thousands), Adjusted EBITDAre increased 13.3% to $139,684 (in thousands), MFFO increased 16.0% to $117,950 (in thousands), and net income increased 18.9% to $60,473 (in thousands). Operating income was $82,198 (in thousands), and operating margin was 20.6%, compared with 19.4% in the prior-year quarter.
Portfolio management remains active. The Company owned 216 hotels as of September 30, 2026, including four hotels classified as held for sale. Five hotels were under contract for sale for a combined gross sales price of $71.8 million, and the Company recognized an impairment loss of approximately $4.3 million related to one hotel under contract for sale. The Company also has a forward-purchase contract for an AC Hotel by Marriott in Anchorage with an anticipated total purchase price of $65.5 million and a Las Vegas dual-branded development with an anticipated total purchase price of approximately $143.7 million.
The balance sheet retained substantial liquidity. Cash and cash equivalents were $42,674 (in thousands), total debt outstanding was $1,490,262 (in thousands), and net total debt outstanding to total capitalization was 27.5%. The Company had approximately $700 million of revolving credit facility availability and no outstanding borrowings under its revolving credit facility following refinancing transactions. It paid $0.24 per common share in distributions during the quarter, made no share repurchases, and had approximately $242.5 million remaining under its Share Repurchase Program.
Management raised its 2026 outlook after stronger-than-anticipated third-quarter performance and an increased fourth-quarter outlook. Full-year guidance calls for net income of $177 Million to $192 Million, Comparable Hotels RevPAR Change of 5.1% to 6.1%, Comparable Hotels Adjusted Hotel EBITDA Margin % of 35.0% to 35.5%, Adjusted EBITDAre of $482 Million to $493 Million, and capital expenditures of $85 Million to $95 Million. Management also cited preliminary October Comparable Hotels RevPAR growth of approximately 10% and broad-based business and leisure travel demand as support for the updated outlook.
Management, verbatim
Momentum continued to build during the third quarter, with broad-based demand from both business and leisure travelers driving Comparable Hotels RevPAR growth of more than 7% as compared to the same period last year. Our asset management and property teams leveraged our efficient operating model to convert top-line gains into approximately 210 basis points of Comparable Hotels Adjusted Hotel EBITDA Margin expansion and an increase in Adjusted EBITDAre of more than 13%. Preliminary results for the month of October indicate Comparable Hotels RevPAR growth of approximately 10%, reflecting strength well beyond the easier comparison to last year’s government shutdown.
Justin Knight, Chief Executive Officer of Apple Hospitality
We are managing our portfolio and balance sheet to position the Company for continued outperformance. During and subsequent to the third quarter, we entered into contracts to sell five hotels for a combined gross sales price of approximately $72 million. Including these hotels, we have sold or contracted to sell 13 hotels for approximately $154 million since the beginning of 2025, recycling capital out of older assets with limited upside and into investments with stronger long-term return potential.
Justin Knight, Chief Executive Officer of Apple Hospitality
Not in the filing
stated, not guessed- Prior-period outlook details were not provided, so comparison of reported results with prior guidance is unavailable.
- GAAP gross margin was not reported.
- GAAP operating cash flow and free cash flow were not reported.
- GAAP and non-GAAP EPS measures other than basic and diluted net income per common share and MFFO per share were not reported.
- A forward revenue, gross margin, operating expenses, or tax-rate guidance range was not reported.
- The filing did not report operating segments.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.