Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust (REIT) that owns one of the largest and most diverse portfolios of upscale, rooms-focused hotels in the United States. As of the latest data, the company's portfolio comprises 235 hotels with more than 30,000 guest rooms, ...Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust (REIT) that owns one of the largest and most diverse portfolios of upscale, rooms-focused hotels in the United States. As of the latest data, the company's portfolio comprises 235 hotels with more than 30,000 guest rooms, strategically located across 87 markets in 34 states. The hotels operate primarily under prominent hospitality brands, including 104 Marriott-branded hotels, 126 Hilton-branded hotels, 3 Hyatt-branded hotels, and 2 independent establishments. This brand diversification helps mitigate risk and provides a stable revenue stream. The company focuses on select-service and extended-stay properties, which are known for higher margins and lower operating costs compared to full-service hotels. Apple Hospitality's business model emphasizes operational efficiency and strategic capital allocation, aiming to deliver consistent returns to shareholders through dividends and property value appreciation. Financially, the company has a moderate leverage profile with a debt-to-equity ratio of 0.036, a current ratio of 0.092, and a dividend yield of approximately 5.9%. As of the latest TTM data, its revenue per share is $6.10, net income per share is $0.742, and free cash flow per share is $1.479. The company's profitability metrics include a net profit margin of 12.2%, an EBITDA margin of 28.7%, and a return on equity of 5.6%. Key financial ratios show a price-to-earnings ratio of 21.85, a price-to-book ratio of 1.216, and an enterprise value to EBITDA of 9.466. Apple Hospitality REIT is led by CEO Justin G. Knight, who has been with the company since its inception and has over 20 years of experience in the lodging industry. The company is headquartered in Richmond, Virginia, and employs 64 people. Founded in 2007, the company has grown significantly through acquisitions and strategic development, and its predecessor companies have a history in the lodging industry spanning over 25 years. Apple Hospitality aims to outperform the industry by focusing on high-quality, well-located properties, maintaining strong relationships with premium brands, and delivering superior returns for investors.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$1.4B
-1.3%
+19.2%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$175.4M
-18.1%
+142.2%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+6.4%
-82.1%
+1483.3%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+17.7%
-13.3%
+54.0%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+12.4%
-17.0%
+103.2%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$282.8M
-13.0%
+746.5%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+20.0%
-11.8%
+610.2%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
56.4%
+16.3%
-93.3%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.27x
-43.2%
-82.3%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good morning, and welcome to Apple Hospitality REIT's Second Quarter 26 Earnings Call. Today's call is based on the earnings release and Form 10 Q which we distributed and filed yesterday afternoon. Before we begin, please note that today's call may include forward looking statements as defined by federal securities laws. These forward looking statements are based on current views and assumptions and as a result are subject to numerous risks, uncertainties, and the outcome of future events that could cause actual results, performance, or achievements to materially differ from those expressed, projected, or implied. Any such forward looking statements are qualified by the risk factors described in our filings with the SEC, including in our 2025 annual on Form 10-K, and speak only as of today. The company undertakes no obligation to publicly update or revise any forward looking statements except as required by law. In addition, non GAAP measures of performance will be discussed during this call. Reconciliations of those measures to GAAP measures and definitions of certain items referred to in our remarks are included in yesterday's earnings release and other filings with the SEC. For a copy of the earnings release or additional information about the company, please visit applehospitalityreit.com. This morning, Justin G. Knight, our chief executive officer, and Elizabeth S. Perkins, our chief financial officer, will provide an overview of our results for the second quarter 26 and an operational outlook for the remainder of the year. Unless otherwise stated, all changes in performance metrics refer to year over year changes for the comparable period. All reference to year to date performance refer to the 6 month period ending 06/30/2026. Following the overview, we will open the call for Q&A. At this time, it is my pleasure to turn the call over to Justin.
Justin G. Knight: Good morning, and thank you for joining us today for our second quarter 2020 earnings call. We are pleased to report comparable hotels RevPAR growth of more than 5% for second quarter. Driven by broad based improvements in both business and leisure travel demand. Approximately 3 quarters of our hotels delivered RevPAR growth, up from 2-thirds in the first quarter. The efficient operating model of our hotels combined with prudent management of expenses enabled us to convert approximately 58¢ of each incremental revenue dollar into comparable hotels adjusted hotel EBITDA. That flow through produced 120 basis points of margin expansion and an NFFO of $0.52 per share. An increase of more than 8% Demand momentum has continued into the third quarter with preliminary reports for the month of July indicating comparable hotels RevPAR growth of more than 5.5%. Weekday occupancy improvement outpaced weekend occupancy improvement during the quarter, indicative of strengthening business travel across our portfolio. While the 26 FIFA World Cup drove significant pricing power in our …