Most REITS show positive RevPAR gains, lack of notable M&A

NATIONAL REPORT — While most U.S.-based hotel REITs announced RevPAR gains as part of their fourth quarter and full-year 2024 earnings, most are setting conservative RevPAR forecasts for performance in 2025.

There were few major acquisitions announced in 4Q24, but there was a notable number of smaller dispositions (below $100 million) as well as several more announced for the first few months of 2025.

Other notable REIT news from the quarter included Ashford Hospitality Trust announcing it had finally paid off its COVID-era strategic financing that had weighed it down the past few years; Park Hotels & Resorts saying it exceeded its full-year 2024 performance estimates despite headwinds from renovations and labor issues; and Wall Street darling Ryman Hospitality Properties continuing to set quarterly revenue records. 

Here’s a roundup of the top U.S.-based REIT’s fourth-quarter and full-year 2024 earnings reports over the past month.

Apple Hospitality REIT
Richmond, Virginia-based Apple Hospitality reported RevPAR growth of 2.7% in Q4 year-over-year and 1.4% for full-year 2024 YOY, driven by a steady improvement in business transient demand. Apple’s hotels saw ADR growth of 1.7% in Q4 YOY and occupancy gains of 2.6%. Its comparable hotels adjusted EBITDA to approximately $108 million in Q4, up 3% YOY. The acquisitive REIT added two hotels in 2024, the 234-key AC Hotel by Marriott Washington DC Convention Center for approximately $116.8 million and the 262-key Embassy Suites by Hilton Madison Downtown for $79.5 million. Apple also sold six hotels in 2024 for a combined gross sales price of approximately $63.4 million, resulting in a combined gain on the sales of approximately $19.7 million, including three in the fourth quarter: the 90-key Courtyard by Marriott Wichita East in Kansas for a gross sales price of approximately $3.1 million. It also sold the 97-key TownePlace Suites by Marriott Knoxville Cedar Bluff in Tennessee for a gross sales price of approximately $9.4 million and the 117-room Hilton Garden Inn Austin North in Texas for a gross sales price of approximately $10.4 million. Apple also disclosed it sold the 76-room Homewood Suites by Hilton Chattanooga-Hamilton Place in Tennessee this month for a gross sales price of approximately $8.3 million.

Ashford Hospitality Trust
Dallas-based Ashford Trust reported comparable hotel RevPAR increased by 3.1% in the fourth quarter, and comparable ADR also increased by 3.4% as part of its earnings. The REIT said adjusted EBITDAre was $45.2 million for Q4 while comparable total hotel revenue also increased 4.6% year-over-year. Earlier in February, Ashford Trust announced, after several refinances of hotel properties, that it has fully paid off its strategic financing, including the exit fee, after utilizing excess proceeds from its $580 million refinancing of 16 hotels. In December, the company announced three core pillars of G&A reduction, revenue maximization and operational efficiency aimed at growing EBITDA for the REIT. In February, Ashford Trust’s board approved board and management compensation reductions for its broader GRO AHT initiative. Compensation for board members was reduced by 50%, and the board has been reduced from nine members down to seven. Additionally, incentive awards granted to executive management and other associates have been reduced by more than 50% relative to recent years. Ashford Trust expects these changes to result in more than $11 million in incremental EBITDA.

Chatham Lodging Trust
West Palm Beach, Florida-based Chatham Lodging said its portfolio comparable RevPAR for its portfolio increased 4% to $129 year-over-year, occupancy jumped 5% to 74%, while ADR declined 1% to $176. CEO Jeffrey Fisher said labor expenses moderated for the first time in a decade, enabling GOP margins of 43%. The REIT also closed on the sale of two of the five hotels under contract to sell for combined proceeds of $29 million (the 144-key Homewood Suites Bloomington in Minnesota and the 143-key Homewood Suites Maitland in Florida). Chatham said it has also closed on another sale in 2025 for $15 million (the 121-key Homewood Suites Brentwood in Tennessee). The remaining two hotels are expected to close in March and generate approximately $39 million in net proceeds.

In February, DiamondRock Hospitality Trust announced the sale of the Westin Washington, D.C. City Center for $92 million.

DiamondRock Hospitality Trust
Bethesda, Maryland-based DiamondRock announced a comparable RevPAR increase of 5.4% year-over-year and comparable revenues increase of 5.7% YOY. Comparable hotel adjusted EBITDA increased to $75.9 million, an increase of 16.4% YOY. “Fourth quarter operating results exceeded our expectations, with group revenues increasing over 8% compared to last year and business transient revenues increasing over 5% to last year. This strong revenue growth coupled with cost savings initiatives led to fourth quarter results exceeding our guidance range,” said CEO Jeff Donnelly. The REIT also said its Florida portfolio underperformed in Q4, with a weakness in leisure representing a 5.8% decline in RevPAR for its Florida portfolio, while the rest of its portfolio (excluding a hotel in Sedona, Arizona undergoing renovation) showed a RevPAR increase of 4.5% YOY. Earlier in February, DiamondRock also announced it has completed the sale of the 410-key Westin Washington, D.C. City Center to Crestview Hills, Kentucky-based Columbia Sussex for $92 million.

Host Hotels & Resorts
Bethesda, Maryland-based Host Hotels & Resorts reported comparable hotel total RevPAR up 3.3% in the fourth quarter year-over-year, driven by improvements in food and beverage revenues from group business and an increase in other revenues from ancillary spend. Comparable hotel RevPAR was up 3% as a result of higher rates driven by transient leisure demand. However, results were tempered by a continued imbalance in international outbound travel from the U.S. compared to international inbound travel. Host reported net income of $109 million, down 19%, and operating profit margin down 210 basis points; both were affected by a $35 million decrease in net gains on insurance settlements.

Park Hotels & Resorts
Tysons, Virginia-based Parks Hotels & Resorts said its fourth quarter and full-year performance exceeded its expectations despite the impact of renovations and strike activity in the latter half of 2024. CEO Thomas Baltimore said when adjusting for the impact of strike activity, the fourth quarter’s comparable RevPAR would have increased by more than 3%, while the full-year comparable RevPAR would have grown by a sector-leading 4.2%. Overall, the REIT reported comparable RevPAR was down 1.4% year-over-year, comparable occupancy was down 1.5% YOY and comparable ADR was up 0.7% YOY. The REIT said it disposed of three non-core assets in 2024, including the sale of two joint venture hotels for a combined $200 million. Since 2017, Park has disposed of 45 hotels for over $3 billion.

Pebblebrook Hotel Trust
Bethesda, Maryland-based Pebblebrook Hotel Trust experienced a sustained recovery in both business group and transient demand, according to CEO Jon Bortz. Bortz also said recently redeveloped properties produced gains in market share and operating performance. “Looking ahead to 2025, we are encouraged by the continued resurgence in leisure demand that began in the fourth quarter of 2024 and has carried into the new year,” he said. The REIT also updated the impact of the fires in Los Angeles on its nine area hotels. Pebblebrook said the properties have experienced a significant increase in business cancellations and a material slowdown in booking due to the fire, which it said should heavily impact Q1, full-year 2025 RevPAR and EBITDA results for the REIT this year. Analyst Michael Bellisario of R.W. Baird said Pebblebrook’s Q4 numbers were well above its forecasts in part due to $5.4 million of business interruption income. “Overall, investor expectations are low (and had been lowered in recent weeks), but guidance includes several moving pieces and headwinds,” he said.

RLJ Lodging Trust
Bethesda, Maryland-based RLJ Lodging Trust reported portfolio comparable RevPAR in Q4 increased 2.2% year-over-year while its total revenues increased to $333 million, a 3.2% increase YOY, as part of its Q4 and full-year 2024 earnings. CEO Leslie Hale said the growth was driven by the top quartile of properties, which reflects positive momentum for its urban-centric portfolio. RLJ said in 2024, it acquired the 110-key Hotel Teatro in Denver for $35.5 million and the fee simple interest in the land underlying the 304-key Wyndham Boston Beacon Hill for $125 million, which was previously subject to a ground lease that was set to expire in 2028. It also sold two non-core assets in 2024, which generated $20.8 million in gross proceeds.

Ryman Hospitality Properties
Nashville-based Ryman Hospitality Properties reported all-time quarterly record consolidated revenue of $647.6 million, driven by all-time quarterly record hospitality revenue of $549.5 million and all-time quarterly record entertainment revenue of $98.2 million. In Q4, the company booked nearly 1.3 million same-store gross definite room nights for all future years at a record estimated ADR for future bookings booked during any fourth quarter of approximately $284. Hospitality revenue for the company increased 0.8% in Q4 year-over-year and 8.9% for all of 2024 YOY. Full-year 2024 total RevPAR was a record $466.18, up 1.8% YOY.

Sunstone Hotel Investors
Aliso Viejo, California-based Sunstone Hotel Investors said comparable revenue decreased 1.1% in the fourth quarter and 2.4% for the full year 2024. CEO Bryan Giglia said, “In 2024, we began to realize the benefits of the investments we have made in our portfolio, which we expect will contribute to growth for the next several years. While industry fundamentals were not as robust in 2024 as we had hoped, we were pleased with the strong performance at our newly converted The Westin Washington, DC Downtown… Additionally, our hotels in Boston and San Antonio benefited from strong group and transient demand, while our Wine Country resorts grew occupancy and profitability.”