Apple lowers RevPAR guidance, announces new deals

RICHMOND, Virginia — Apple Hospitality REIT reported a year-over-year RevPAR loss for the third quarter and reduced its RevPAR guidance for the rest of the year, while also announcing two pending asset sales and two fixed-price development deals as part of its earnings statement.

“Fundamentals for our portfolio remained strong during the third quarter despite ongoing uncertainty broadly impacting the operating backdrop,” said CEO Justin Knight in the company’s earnings release. “Together with our management companies, our asset and revenue management teams have done a tremendous job tactically shifting the mix of business at our hotels to strengthen market share and adjust to changing demand trends driven in large part by the pullback in government travel.”

Together with our management companies, our asset and revenue management teams have done a tremendous job tactically shifting the mix of business at our hotels to strengthen market share and adjust to changing demand trends driven in large part by the pullback in government travel.

Justin Knight

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While the Richmond, Virginia-based REIT said its RevPAR for July was up 1.1%, the company’s third-quarter RevPAR results were more dire, with August down 3%, September down 3.6% and October down 3%. As a result, Apple lowered its full-year 2025 RevPAR guidance from -1% to -2%.

In terms of pipeline, the company said it has two hotels under contract for purchase for a combined anticipated price of $163.7 million. Deals include the long-ago announced acquisition of the 260-key Motto by Hilton in Nashville, Tennessee for $98.2 million that is expected to be completed in December and a 160-key AC Hotel by Marriott being development in Anchorage, Alaska, for $65.5 million, which Apple anticipates acquiring in the fourth quarter of 2027.

During Q3, Apple also entered into a fixed-price, forward-purchase contract with a third-party developer for a dual-branded AC Hotel by Marriott (237 keys) and a Residence Inn by Marriott (160 keys) in Las Vegas for an anticipated purchase price of approximately $143.7 million. The hotels will be developed on the land Apple owns that is adjacent to its SpringHill Suites Las Vegas Convention Center and are scheduled to be completed by the second quarter of 2028.  

The REIT also announced it currently has four hotels under contract for sale for approximately $36.4 million, including hotels announced in August, the 103-key Hampton Inn & Suites by Hilton and its adjacent 95-key Homewood Suites by Hilton in Cedar Rapids, Iowa, for a combined price of $16.1 million. Apple said it expects to complete all four sales by the end of 2025.

Analyst Michael Bellisario of R.W. Baird said despite the negative RevPAR results, Apple’s third-quarter results were better than feared.

“Apple’s 3Q25 earnings were ahead of Baird/Street estimates on better margins and lower corporate-level G&A expense,” he wrote. “Full-year RevPAR guidance was cut 100 bps at the midpoint (directionally expected, in our view), but adjusted EBITDA was increased nominally due to reduced G&A expense offsetting a lower Hotel EBITDA outlook (-$2.2 million).”