Apple Hospitality (APLE) Earnings Transcript

The Motley Fool

by newsfeedback@fool.com (Motley Fool Transcribing)

February 24, 2026

AI-Generated Deep Dive Summary

Apple Hospitality (APLE) reported mixed financial results in its latest earnings transcript, highlighting challenges tied to reduced government and business travel demand. The company’s Comparable Hotels RevPAR fell 1.6% annually to $118, driven by weaker occupancy and average daily rates (ADR). Despite stable pricing power with an ADR of $159—nearly flat year-over-year—the decline in occupancy (74%) andRevPAR reflects broader demand pressures. Adjusted Hotel EBITDA dropped 8.6% to $474 million, while EBITDA margins contracted by nearly 200 basis points to 34.3%. Total revenue also fell 2.1% to $1.4 billion, underscoring the impact of softer demand across key segments. The company’s financial performance was further strained by rising fixed costs and expenses. Fixed expenses increased 7% year-over-year, weighing on margins despite stable ADRs. Payroll per occupied room rose 3%, contributing to higher operational costs. These challenges were compounded by reduced government travel and ongoing policy uncertainties, which management described as a “pullback” affecting demand. The company’s Q4 results also showedRevPAR declining 2.6% to $107, with weaker occupancy and rates across certain markets. Apple Hospitality has taken steps to manage its portfolio, including disposing of seven hotels for $73 million and repurchasing 4.6 million shares under a 6.5-turn EBITDA multiple spread. These moves reflect efforts to optimize the balance sheet and address valuation gaps. Capital expenditures totaled $88 million, aligning with historical levels of 5-6% of revenue. The company’s debt stood at $1.5 billion, with 64% fixed or hedged, maintaining liquidity through $9 million in cash and a revolving credit facility. Looking ahead, Apple Hospitality expects RevPAR to change by -1% to +1% in 2026, reflecting

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Originally published on The Motley Fool on 2/24/2026