Apple Hospitality REIT Inc Q3 2024 Earnings Call Transcript

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

Question: Dori Kesten - Wells Fargo & Company. - Analyst : Thanks. Good morning. You highlighted a disconnect between business transient and leisure rates from their historic trends. Can you give us an update on where that spread is now? I guess versus history and then where you believe that trend line is going?

Question: Dori Kesten - Wells Fargo & Company. - Analyst : Okay. And then with October RevPAR are up 4%. I guess what is been assumed for November and December to get to the Q4 midpoint. And we're just trying to figure out the swing between your assumptions around the election versus holiday travel.

Question: Dori Kesten - Wells Fargo & Company. - Analyst : Okay. And then just last question, how would you expect 2025 expense growth to compare to what's implied in your current 24 guidance.

Question: Dori Kesten - Wells Fargo & Company. - Analyst : Okay, 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. NOVEMBER 05, 2024 / 3:00PM, APLE.N - Q3 2024 Apple Hospitality REIT Inc Earnings Call

Question: Austin Wurschmidt - KeyBanc Capital Markets Inc - Analyst : Hey, good morning, everybody. So, Justin, you highlighted it towards the end of your prepared remarks that operating performance should continue to improve, I guess. What are you most excited about turning the calendar into 2025? And, and what do you think changes, heading in the next year? That could look different, I guess than how, this year has played out.

Question: Austin Wurschmidt - KeyBanc Capital Markets Inc - Analyst : You talked a lot about the mix manage opportunity Midweek, I guess. How far away are you from an occupancy perspective to really being able to press the lever, I guess on mix managing and really getting kind of rate growth moving more meaningfully higher.

Question: Austin Wurschmidt - KeyBanc Capital Markets Inc - Analyst : It's helpful and then just last one, just I guess just if we do kind of remain in this little, slower RevPAR growth environment, maybe with mixed directions, I guess in the direction of the economy is the decision to repurchase additional shares is that just predicated on the ability to sell some of the slower growth, non-core assets at an attractive spread to where the stocks trade, like, can you kind of just walk us through the latest thinking on buybacks? And to the extent the environment remains very similar heading into next year?

Question: Austin Wurschmidt - KeyBanc Capital Markets Inc - Analyst : Great. Thank you.

Question: Tyler Batory - Oppenheimer & Co. Inc - Analyst : Yeah, thanks time to here. Good morning, everyone. So, I just want to follow up on the midweek and mixed discussion. It's obviously something that's important that a lot of investors are focused on. Can you give a little bit more numbers around? How much room there is for occupancy growth mid-week? I'm not sure if you can talk about kind of where you are now versus where you were pre COVID or where you'd ideally really like to be and there's definitely a mix shift here where I can see it is growing midweek. It's offsetting some weakness. It sounds like on the on the weekend do you think that continues going forward in terms of that mix shift and what are the implications there? As occupancy is moving around a little bit in terms of your ADR.

Question: Tyler Batory - Oppenheimer & Co. Inc - Analyst : Okay, Thank you. And then a market specific question on Nashville, it was one of the software markets for you in the quarter. I think a software

Question: Tyler Batory - Oppenheimer & Co. Inc - Analyst : Very helpful. That's all for me. Thank you.

Question: Jay Kornreich - Wedbush Securities Inc. - Analyst : Hey, thank you. Good morning. Can you talk about what you're seeing in the overall transaction marketplace? I guess with, the volatility and interest rates, has it slowed down or are there opportunities still coming up that you're assessing? And I guess just based on where your stock is trading and funding considerations, how do you think about your current interest and acquisitions?

Question: Jay Kornreich - Wedbush Securities Inc. - Analyst : All right. Thank you for that. And then just one follow up, I just wanted to ask about the group component of your business, which I recognize is only 14% of demand. I'm curious if you're seeing any changes with that segment and if you have any read into how bookings are looking for next year relative to this time last year.

Question: Jay Kornreich - Wedbush Securities Inc. - Analyst : Okay, Appreciate it. Thanks. That's it for me.

Question: Michael Bellisario - Baird - Analyst : Thanks, good morning, everyone, just want to go back to, it's probably for Liz just on the booking window and some of your visibility, maybe unpack all the calendar shifts in 3Q, 4Q. Which way is the booking window moving? And then are you seeing any change in cancellations or rebooking activity occur?

Question: Michael Bellisario - Baird - Analyst : Got it that's helpful. And then along the same lines just with the shorter booking window today, how does that affect staffing and planning at the hotel operational level? And is that shorter booking window impacting the wage growth rate at all?

Question: Michael Bellisario - Baird - Analyst : Understood. And then just last one for me, for just a capital location turned the clock back a year ago. You were pretty aggressive on the buy side acquisition wise when the stock was higher, maybe push you a little bit here on the flip side. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 05, 2024 / 3:00PM, APLE.N - Q3 2024 Apple Hospitality REIT Inc Earnings Call I mean, why not be more aggressive on the sell side? I know you're selling four hotels but, but smaller dollars and if you can capture a turn and a half spread, which I think is wider than the spread you captured on the buy side, maybe why not move more aggressively on the sell side with assets? Thank you.

Question: Michael Bellisario - Baird - Analyst : And then just one follow up there, any portfolio premium emerging on the sales side or is it still all one's and twos in terms of best way?

Question: Michael Bellisario - Baird - Analyst : All helpful. Thank you.

Question: Chris Darling - Green Street - Analyst : Thanks, good morning. Justin, is there any update you can provide on the land parcel you have out in Vegas. And to the extent you're interested in developing, is that something you would consider pursuing on balance sheet or would you more likely structure a deal maybe with a partner of some sort?

Question: Chris Darling - Green Street - Analyst : Okay, that's helpful. And then maybe to the latter half of your answer there. I'd be curious just on the development front and in terms of some of those take out transactions that you've structured, what does the pipeline look like today? And would we potentially expect to see you enter more of those contracts over the next months and quarters.

Question: Chris Darling - Green Street - Analyst : All right, I appreciate the time and that's all for me. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 05, 2024 / 3:00PM, APLE.N - Q3 2024 Apple Hospitality REIT Inc Earnings Call

Question: Ken Billingsley - Compass Point Research & Trading, LLC - Analyst : Hi, good morning. It's Ken Billingsley for florist. Just expense questions. Your CapEx is listed at [7,585] for the year. So that leaves quite a bit in the fourth quarter. Given where we are. My question is what and how much is left to do and is some of that going to get pushed into 25? And are you looking for the same type of CapEx budget for next year?

Question: Ken Billingsley - Compass Point Research & Trading, LLC - Analyst : Okay. And then a question on the insurance given, you said it was down 20% given where those have been priced over the last year or so. Can you talk about like what maybe bringing that down and it's something unique in your mixer portfolio.