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• It's like Simon Property Group for hotels.
• It's like Prologis for hotels.
• It's like Public Storage for hotels.

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• Lodging Services: Providing guest rooms and suites for travelers and visitors seeking overnight accommodations.
• Meeting and Event Facilities: Offering flexible spaces such as conference rooms, banquet halls, and outdoor areas for business meetings, conferences, and social gatherings.
• Food and Beverage Services: Providing on-site dining options, bars, and catering services to guests within the owned hotel properties.

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Apple Hospitality REIT (APLE) is a real estate investment trust that owns upscale limited-service and select full-service hotels across the United States. As an owner of hotel properties, APLE's ultimate customers are the guests who stay in these hotels, making its primary sales to individuals rather than other companies. While companies may book rooms for their employees or groups, the final consumption of the service is by an individual.

The company primarily serves the following categories of individual customers:

• Business Travelers: Individuals traveling for work, corporate meetings, conferences, or training. These customers often prioritize amenities such as high-speed internet, business centers, proximity to corporate hubs, and loyalty program benefits.
• Leisure Travelers: Individuals or families traveling for vacation, tourism, personal events (such as weddings or family visits), or recreational purposes. Their priorities often include location near attractions, comfortable accommodations, recreational facilities, and value.
• Group Travelers: While often organized by companies, associations, or event planners, the individual hotel stays are consumed by members of a group. This category includes participants in conventions, sports teams, educational tours, and social events requiring blocks of rooms.

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• Marriott International, Inc. (MAR)
• Hilton Worldwide Holdings Inc. (HLT)
• Hyatt Hotels Corporation (H)

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Justin G. Knight, Chief Executive Officer and Director

Mr. Knight joined the Apple REIT Companies in 2000 and has served as Chief Executive Officer of Apple Hospitality REIT since May 2014. He previously served as President of the Company from its inception to March 2020. He also served as President of each of the former Apple REIT Companies, except Apple Suites, until they were sold to a third party or merged with the Company. Prior to joining the Apple REIT Companies, Mr. Knight worked in web design and served as senior asset manager and director of quality control for Cornerstone Realty Income Trust from 1996 to 1998. His father, Glade M. Knight, founded the Company.

Elizabeth Perkins, Senior Vice President and Chief Financial Officer

Ms. Perkins joined the Apple REIT Companies in 2006. She served as Senior Vice President of corporate strategy prior to her promotion to Senior Vice President and Chief Financial Officer.

Glade M. Knight, Executive Chairman

Mr. Knight is the founder of Apple Hospitality REIT and has served as Executive Chairman since May 2014. He previously served as Chairman and Chief Executive Officer of the Company since its inception.

Nelson Knight, President, Real Estate and Investments

Mr. Knight joined the Apple REIT Companies in 2005 and has served as President, Real Estate and Investments for Apple Hospitality REIT. Prior to this role, he served as Executive Vice President and Chief Investment Officer since May 2014.

Howard E. Woolley, Jr., Independent Director

Mr. Woolley has served as President and Chief Executive Officer of Howard Woolley Group, LLC, a government relations, public policy, and regulatory risk advisory firm, since 2015. Prior to founding his firm, he served as Senior Vice President Wireless Policy and Strategic Alliances for Verizon Communications Inc. ("Verizon"). During his tenure at Verizon, he served as a public policy advisor to every CEO of Verizon Wireless from its founding in 2000 until his retirement from the company in 2013. Mr. Woolley joined Apple Hospitality REIT's Board of Directors in March 2021.

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The key risks to Apple Hospitality REIT (APLE) primarily stem from the inherent cyclicality of the hospitality industry, its financial structure, and operational dependencies:

1. Sensitivity to Economic Fluctuations and Hotel Industry Performance: Apple Hospitality REIT's business is highly susceptible to broader economic conditions and trends in the hotel industry. Factors such as softer booking trends, declining occupancy, and reduced Revenue Per Available Room (RevPAR) directly impact the company's revenue. Persistent inflationary pressures on operating costs, including labor and utilities, also weigh on profitability, affecting key metrics like the Adjusted Hotel EBITDA Margin. Uncertain U.S. tourism trends, weaker consumer confidence, and potential impacts from government spending can further challenge demand for hotel stays.

2. Interest Rate Volatility and Debt/Refinancing Risk: The company carries a substantial amount of outstanding debt, and changes in interest rates pose a significant financial risk. With relatively short weighted-average debt maturities, Apple Hospitality REIT faces refinancing risk, where rising interest rates could lead to increased costs of capital and debt servicing expenses, thereby impacting its financial performance. Non-compliance with financial covenants in its debt agreements could also trigger a default.

3. Dependence on Third-Party Hotel Managers and Brand Partners: To maintain its Real Estate Investment Trust (REIT) status, Apple Hospitality REIT does not directly operate its hotels; instead, it relies on third-party management companies. This arrangement limits the company's direct control over the day-to-day operations of its properties. While affiliations with strong hotel brands provide marketability and guest loyalty, this dependence can also restrict operational flexibility.

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A sustained structural reduction in traditional business travel demand resulting from the long-term adoption of remote work and virtual meeting technologies.

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The addressable market for Apple Hospitality REIT (APLE) is the U.S. hotels market. Apple Hospitality REIT primarily focuses on owning and operating upscale, rooms-focused hotels across the United States.

The U.S. hotels market size was estimated at approximately $263.21 billion in 2024 and is projected to reach approximately $280.63 billion in 2025. Another estimate places the U.S. Hotels & Motels market size at $285.1 billion in 2024 and $286.5 billion in 2025.

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Here are 3-5 expected drivers of future revenue growth for Apple Hospitality REIT (APLE) over the next 2-3 years:

1. Improvements in Occupancy, Average Daily Rate (ADR), and Revenue Per Available Room (RevPAR): Apple Hospitality REIT's revenue is primarily driven by its hotel operations, with occupancy rates, average daily rates, and revenue per available room being key performance indicators. The company has seen increases in occupancy and ADR for comparable hotels, contributing to overall revenue growth. Continued strength and recovery in these metrics are crucial for future revenue expansion.
2. Strategic Capital Investments and Property Renovations: The company aims to enhance property value through strategic capital improvements and renovations. These investments can lead to higher average daily rates and revenue per available room, thereby boosting overall revenue.
3. Acquisitions and Development of New Hotels: Apple Hospitality REIT focuses on its investment strategy, which includes pursuing accretive opportunities and expanding its portfolio. The company has announced future development transactions for new hotels, and successful acquisitions and developments will directly contribute to revenue growth by increasing the number of available rooms and market presence.
4. Recovery and Growth in Business and Leisure Travel Demand: The performance of the hospitality sector is closely tied to economic cycles, travel patterns, and consumer confidence. Continued strength in leisure demand and further recovery in business travel are expected to positively impact hotel bookings and, consequently, the company's revenue. Anticipated demand improvements in the coming years, particularly following any macroeconomic uncertainties, are also a factor.

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Share Repurchases

• Apple Hospitality REIT extended its share repurchase program until July 2026, allowing for up to $262.6 million in common share repurchases.
• The company repurchased approximately $45.2 million of its common shares year-to-date through September 30, 2025.
• In 2024, Apple Hospitality REIT purchased approximately $34.7 million of its common shares.

Share Issuance

• As of June 30, 2025, Apple Hospitality REIT had $500 million remaining under its At-The-Market (ATM) program for the issuance of shares, though no shares were sold under this program during the first half of 2025.
• In February 2024, the company launched a $500 million ATM equity offering program with proceeds intended for general corporate purposes, including debt repayment and property acquisitions.

Outbound Investments

• In 2024, Apple Hospitality REIT acquired two hotels for a combined total purchase price of approximately $196.3 million, including the AC Hotel by Marriott Washington DC Convention Center for $116.8 million and the Embassy Suites by Hilton Madison Downtown for $79.5 million.
• During the second quarter of 2025, the company acquired the Homewood Suites by Hilton Tampa-Brandon for $18.8 million.
• The company sold six hotels for approximately $63.4 million in 2024 and an additional hotel for $8.3 million in February 2025.

Capital Expenditures

• Apple Hospitality REIT anticipates investing approximately $80 million to $90 million in capital improvements during 2025, with a primary focus on comprehensive renovation projects for approximately 20 hotels.
• In 2024, the company invested approximately $78 million in capital expenditures.
• In 2023, capital expenditures amounted to approximately $77 million.