Apple Hospitality REIT : Investor Presentation

Published: 2025-05-05 22:03:24 ET APLE

Published on 05/05/2025 at 22:03

INVESTOR

PRESENTATION

M A Y 2 0 2 5 • N Y S E : A P L E

F O R WA R D - L O O K I N G S TAT E M E N T S

Certain statements made in this presentation are forward-looking statements. These forward-looking statements include statements regarding our intent, belief or current expectations and are based on various assumptions. These statements involve substantial risks and uncertainties. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. Forward-looking statements may include, but are not limited to, statements regarding net asset value and potential trading prices. Words such as "anticipates," "believes," "expects," "estimates," "projects," "plans," "intends," "may," "will," "would," "outlook," "strategy," "targets," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results or outcomes may differ materially from those contemplated by the forward-looking statement. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise any forward-looking statement to reflect changed assumptions or the occurrence of unanticipated events or changes to future operating results, unless required to do so by law. Such factors include, but are not limited to, the ability of Apple Hospitality REIT, Inc. (the "Company," "Apple Hospitality," "Apple" or "APLE") to effectively acquire and dispose of properties and redeploy proceeds; the anticipated timing and frequency of shareholder distributions; the ability of the Company to fund capital obligations; the ability of the Company to successfully integrate pending transactions and implement its operating strategy; changes in general political, economic and competitive conditions and specific market conditions (including the potential effects of tariffs, inflation or a recessionary environment); reduced business and leisure travel due to geopolitical uncertainty, including terrorism and acts of war; travel-related health concerns, including widespread outbreaks of infectious or contagious diseases in the U.S.; inclement weather conditions, including natural disasters such as hurricanes, earthquakes and wildfires; government shutdowns, airline strikes or equipment failures or other disruptions; adverse changes in the real estate and real estate capital markets; financing risks; changes in interest rates; litigation risks; regulatory proceedings or inquiries; changes in laws or regulations or interpretations of current laws and regulations that impact the Company's business, assets or classification as a real estate investment trust; or other risks detailed in filings made by Apple Hospitality with the Securities and Exchange Commission ("SEC"). Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore there can be no assurance that such statements included in this presentation will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the results or conditions described in such statements or the objectives and plans of the Company will be achieved.

HOMEWOOD SUITES SAN JOSE AIRPORT- 2

SILICON VALLEY

Apple Hospitality is a publicly traded real estate investment trust that owns one of the largest and most diverse portfolios of upscale, rooms-focused hotels in the United States.

Scale Ownership of Upscale, Rooms-Focused Hotels

Industry-Leading Brands and Operators

Broad Geographic Diversification

Consistent Reinvestment(1)

Strong, Flexible Balance Sheet(2)

220

15

37

5 yrs

33%

HOTELS

BRANDS

STATES

AVERAGE

NET TOTAL DEBT

EFFECTIVE AGE

TO TOTAL CAPITALIZATION

29,767

GUEST ROOMS

72%

OUTSTANDING DEBT EFFECTIVELY FIXED

99%

16

85

4.3

205

ROOMS- FOCUSED

MANAGEMENT COMPANIES

MARKETS

AVERAGE TRIPADVISOR®

HOTELS UNENCUMBERED

RATING

Note: Hotel portfolio statistics as of May 1, 2025. Market categorization based on STR designation.

Average Effective Age represents years since hotels were built or last renovated. Average actual age of hotels is 17 years. The Tripadvisor® rating is based on lifetime scores for the Apple Hospitality portfolio of hotels through March 31, 2025.

Net Total Debt to Total Capitalization calculation based on (as of March 31, 2025) total debt outstanding, net of cash and cash equivalents ("net total debt outstanding"), divided by net total debt outstanding plus equity market capitalization based on the

Company's closing share price of $12.91 and outstanding common shares. Based on hotels owned as of March 31, 2025.

3

C O M PA N Y P R O F I L E A N D P R O V E N I N V E S T M E N T S T R AT E G Y

$1.4 Billion

I N R E V E N U E

Full Year 2024

$1.61

2 0 2 4 M F F O P E R S H A R E (1)

$0.89 Net Income Per Share

$243.7 Million

D I S T R I B U T I O N S P A I D

In 2024

+20.1 ppts

TSR Outperformance vs. MSCI US REIT Index for the 2022-2024 Period

+18.9 ppts

TSR Outperformance vs. Dow Jones U.S. Real Estate Hotels Index for the 2022-2024 Period

+21.4 ppts

TSR Outperformance vs. Nareit Lodging/Resorts Index for the 2022-2024 Period

EXCHANGE: TICKER

NYSE: APLE

DIVIDEND YIELD at 4/30/2025

8.2% annual yield, annual rate of $0.96 per share, paid monthly

AVERAGE TRADING VOLUME TTM 4/30/2025

2.2 Million shares per day

EQUITY MARKET CAP at 3/31/2025

$3.1 Billion

NET DEBT at 3/31/2025

$1.5 Billion, 33% net total debt outstanding to total capitalization

TOTAL ENTERPRISE VALUE at 3/31/2025

$4.6 Billion

COMPARABLE HOTELS REVENUE(1) TTM 3/31/2025

$1.4 Billion

COMPARABLE HOTELS ADJUSTED HOTEL EBITDA MARGIN(1) TTM 3/31/2025

35.7%

2025 ESTIMATED CAPEX

$80 Million to $90 Million

EXECUTIVE TARGET COMPENSATION STRUCTURE

78% executive target compensation incentive based

See following pages for reconciliation to actual revenue and net income.

Note: Statistics above compare the Company's performance with the performance of specific industry indices using total shareholder return ("TSR"). Net Total Debt to Total Capitalization calculation based on (as of March 31, 2025) total debt

outstanding, net of cash and cash equivalents ("net total debt outstanding"), divided by net total debt outstanding plus equity market capitalization based on the Company's closing share price of $12.91 and outstanding common shares.

4

C O M PA N Y O V E R V I E W

M A N A G E M E N T T E A M W I T H D E E P I N D U S T R Y

E X P E R I E N C E O V E R M U LT I P L E H O T E L C Y C L E S

Average executive tenure with the Apple REIT Companies is 18 years

Established and operated 8 public hospitality REITs

Raised and invested approximately $7.4 billion of equity in hotel assets

Purchased 456 hotels

Purchased as many as 74 hotels in a single year through individual hotel and small portfolio transactions

Managed over $1.2 billion in CapEx and renovation

spending

Sold 4 REITs in 3 transactions totaling $2.7 billion

Merged 3 REITs and listed Company on NYSE

Completed $1.3 billion Apple REIT Ten merger

Representation on over 30 brand and industry advisory

boards and councils

COURTYARD RICHMOND DOWNTOWN

MISSION

We are a leading real estate investment company committed to increasing shareholder value through the distribution of attractive dividends and long-term capital appreciation.

VALUES

Hospitality - We are thoughtful in our interactions with others and know that strong, caring relationships are the core of our industry.

Resolve - We are passionate about the work we do and are steadfast in our commitment to our shareholders.

Excellence - We are driven to succeed and improve through innovation and perseverance.

Integrity - We are trustworthy and accountable.

Teamwork - We support and empower one another, embracing diversity of opinion and background. 5

Disclaimer

Apple Hospitality REIT Inc. published this content on May 05, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 06, 2025 at 01:53 UTC.