Q1 2024 Apple Hospitality REIT Inc Earnings Call Transcript
Key Points
- Adjusted EBITDA RE increased by 6% year-over-year to $101 million, and modified funds from operations rose by 5% to $83 million.
- Comparable hotels RevPAR for Q1 2024 was up approximately 8% relative to Q1 2019, indicating strong performance ahead of pre-pandemic levels.
- Recent acquisitions, including the AC Hotel Washington DC, are expected to be significantly contributive to long-term performance with a 7.7% cap rate and an EBITDA yield of 8.5%.
- The company maintains a strong balance sheet with ample liquidity for further acquisitions, enhancing its scalable platform.
- Apple Hospitality REIT Inc continues to provide an attractive dividend yield, with a regular monthly cash distribution representing an annual yield of approximately 6.5%.
- Comparable hotels adjusted hotel EBITDA for Q1 2024 was down 3% compared to the same period in 2023.
- The portfolio performance for Q1 was below the low end of the guidance range, influenced by a shift in Super Bowl venues and an unfavorable calendar shift with the Easter holiday.
- Ongoing inflationary pressures and wage increases continue to impact operating expenses, although efforts are being made to manage these effectively.
- The company faces challenges from new competition in certain markets, such as the 15% supply growth in Rogers, Arkansas, leading to strategic asset disposals.
- Despite strong performance indicators, there are concerns about potential softening in leisure demand, which could impact future occupancy and rate growth.
Greetings and welcome to the Apple Hospitality retail First Quarter 2024 earnings. (Operator Instructions)
As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Kelly Clarke Vice President of Investor Relations. Thank you. You may begin.
Thank you and good morning. Welcome to Apple Hospitality REIT's first Quarter 2024 earnings call. today's call will be 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
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