Apple Hospitality REIT Inc Q1 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Austin Wurschmidt - KeyBanc Capital Markets Inc. - Analyst : Thanks, and good morning, everybody. Liz, you highlighted some of the negative impact that the Easter holiday shift had on 1Q, but any sense how much of a benefit that shift on April's performance, and just how April is kind of compared versus budget? And then I recall last year you're talking about some really strong midweek strength in late April. And I'm just curious when you remove some of that holiday noise maybe from the

Question: Austin Wurschmidt - KeyBanc Capital Markets Inc. - Analyst : It's helpful. And then wanted to hit one on the transaction landscape. Justin, given kind of the evolving interest rate environment or interest rate expectations, maybe have you seen any changes in seller expectations and sort of the volume of opportunities that are coming to the transaction market?

Question: Austin Wurschmidt - KeyBanc Capital Markets Inc. - Analyst : It's helpful. And then just last one for me. On the ACDC, can you remind us given when that was completed where that stands relative to kind of stabilization versus a comp set of hotels in the DC market?

Question: Austin Wurschmidt - KeyBanc Capital Markets Inc. - Analyst : Right. Thanks for the time. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 07, 2024 / 2:00PM, APLE.N - Q1 2024 Apple Hospitality REIT Inc Earnings Call

Question: Anthony Powell - Barclays - Analyst : Hi, good morning. It's a question on the overall, I guess, (inaudible) or other consumer in your eyes, we've heard a lot about kind of leisure, I guess hesitancy or softness of other calls. You seem to be pretty optimistic there. So what are you seeing from your leisure customers or small groups and social groups and maybe your SMEs on their willingness to travel right now?

Question: Anthony Powell - Barclays - Analyst : Okay. So following up on that, most of your other peers have talked about May and June being a lot better than April, and your April was better than most of your peers. I'm curious what you is new to the rest of the cadence for the rest of the quarter here?

Question: Anthony Powell - Barclays - Analyst : Okay. Thank you.

Question: Michael Bellisario - Baird - Analyst : Thanks. Good morning, everyone. Just one more on the leisure commentary vis a vis the softer trends that come on the demand side? Or was it really related to some pricing sensitivity? And then, I know, Justin, you said big variances across markets, but any particular market that you can point to that were surprisingly weak?

Question: Michael Bellisario - Baird - Analyst : That's helpful. And then just switching gears on the DC transaction. Could you quantify how much of the $10 million trailing EBITDA comes from that rooftop retail space in the billboard? And then also just any more color on the transaction process, the background, other bidders and seller motivation would be helpful. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 07, 2024 / 2:00PM, APLE.N - Q1 2024 Apple Hospitality REIT Inc Earnings Call

Question: Michael Bellisario - Baird - Analyst : Got it. And then just one clarification. Let's just 20% of total revenues presumably that's a 100% margin so a much higher percentage of EBITDA. Is that a correct assumption?

Question: Michael Bellisario - Baird - Analyst : Helpful.

Question: Chris Darling - Green Street - Analyst : Hey, thanks, good morning. Just in going back to the last question, actually, you mentioned just higher interest rates in the past couple of months and that putting Apple really into competitors position that have a competitive advantage in terms of acquiring properties. On the flip side, how does that impact your ability or willingness perhaps to bring incremental assets to market for disposition perhaps as a source of funds in the near term?

Question: Chris Darling - Green Street - Analyst : And that's all helpful comments. And then just one more and maybe following up with Liz on some of the operating expense comments. How are you thinking about expense growth over a longer term timeframe over the next few years is 3% to 4%, and still a decent bedding line to be thinking about or how would you characterize and the setup? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 07, 2024 / 2:00PM, APLE.N - Q1 2024 Apple Hospitality REIT Inc Earnings Call

Question: Chris Darling - Green Street - Analyst : I appreciate the thoughts. Thank you.