Apple Hospitality REIT Inc. (APLE) reported fourth‑quarter and full‑year 2025 financial results that show modest declines in revenue and earnings but continued focus on shareholder returns. Net income fell 0.7% to $29.6 million in Q4 and 18.1% to $175.4 million for the year, while adjusted hotel EBITDA contracted 8.4% to $99 million in the quarter and 19.8% to $474 million for the year, reflecting tighter margins in a challenging demand environment.
Q4 revenue was $326.44 million, down 1.3% from $321.5 million a year earlier, and full‑year revenue totaled $1.412 billion, a 1.1% decline from $1.432 billion in 2024. The revenue drop is largely attributable to weaker government‑dependent travel, while leisure demand helped keep RevPAR near $118 for the year, only 1.6% lower than 2024.
Adjusted hotel EBITDA margins slipped to 31.1% in Q4 from 33.5% a year earlier and to 34.3% for the year from 36.2% in 2024, indicating compression from higher operating costs and a shift toward lower‑margin properties. The company’s cost‑control program helped limit the decline, but the margin contraction signals ongoing pricing pressure in the lodging market.
Capital‑allocation activity remained robust: APLE sold seven hotels for $73.3 million, repurchased 4.6 million shares for $58 million, and paid $240.4 million in distributions, underscoring its commitment to returning value to shareholders while maintaining a net debt‑to‑capitalization ratio of 35.5%.
Management highlighted the impact of a pullback in government travel and the resilience of leisure demand. “Through the successful navigation of changes in government‑dependent demand combined with continued strength in leisure travel, we achieved comparable hotels RevPAR of $118 for the full year 2025, down only 1.6% to 2024,” said CEO Justin Knight.
Earnings per share of $0.31 beat the consensus estimate of $0.1326 for Non‑GAAP EPS, but some analysts noted a miss relative to a $0.29 estimate. The beat reflects disciplined cost management and a favorable mix of higher‑margin properties, while the miss highlights the pressure from declining revenue and margin compression.
The company’s 2026 outlook remains cautious, with management projecting comparable hotels RevPAR to range between a 1.0% decline and a 1.0% increase, signaling uncertainty in demand but confidence in maintaining profitability through strategic portfolio adjustments and disciplined capital allocation.
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