Apple Hospitality Raises 2026 Outlook After RevPAR Acceleration

The Tip Desk · November 7, 2026 · 4 min read

Comparable Hotels RevPAR rose 7.3% in the third quarter, and the company lifted full-year net income guidance by $19 million from the prior midpoint.

Apple Hospitality REIT, Inc. (APLE) reported Comparable Hotels RevPAR growth of 7.3% for the three months ended September 30, 2026, a step-up from 5% in the second quarter and 2.2% in the first quarter, and raised its 2026 outlook after the faster run-rate.

The publicly traded lodging REIT said the acceleration reflected broad-based demand from business and leisure travelers. Comparable Hotels ADR rose 4.3% to $170.53 and occupancy rose 2.8% to 78.3%. The company said those ADR, occupancy and RevPAR figures exceeded STR industry averages for the quarter.

Chief Executive Officer Justin Knight said momentum continued to build, with asset-management and property teams converting top-line gains into about 210 basis points of Comparable Hotels Adjusted Hotel EBITDA margin expansion. That margin reached 37.1%. Comparable Hotels Adjusted Hotel EBITDA rose 14.7% to $145.9 million. Adjusted EBITDAre increased 13.3% to $139.7 million and modified funds from operations rose 16.0% to $118.0 million.

Net income rose 18.9% to $60.5 million, or $0.26 a share, from $50.9 million, or $0.21 a share, a year earlier. Operating income rose 13.4% to $82.2 million and operating margin expanded 120 bps to 20.6%.

Monthly comparable performance showed the pace picking up through the quarter. Comparable Hotels RevPAR rose 6.2% in July, 4.6% in August and 11.2% in September. September occupancy rose 4.7% and ADR rose 6.2%. Comparable Hotels Adjusted Hotel EBITDA rose 10.4% in July, 10.0% in August and 24.9% in September.

Preliminary results for October 2026 indicated Comparable Hotels RevPAR growth of approximately 10% versus October 2025, which the company said reflected strength well beyond the easier comparison to last year’s government shutdown.

The company is updating its 2026 operational and financial outlook. Compared with the midpoint of previously provided guidance, it is increasing net income by $19 million, Adjusted EBITDAre by $23 million, Comparable Hotels RevPAR change by 235 bps and Comparable Hotels Adjusted Hotel EBITDA margin by 105 bps. The revised ranges are net income of $177 million to $192 million, Comparable Hotels RevPAR change of 5.1% to 6.1%, Comparable Hotels Adjusted Hotel EBITDA margin of 35.0% to 35.5% and Adjusted EBITDAre of $482 million to $493 million. Capital expenditures remain $85 million to $95 million. The company said the update reflects stronger-than-anticipated third-quarter performance and an increased fourth-quarter outlook driven by continued improvement in business and leisure travel demand.

During and after the third quarter, Apple Hospitality entered contracts to sell five hotels for a combined gross sales price of $71.8 million, including three Santa Clarita properties for $42.0 million, a Davenport Hampton Inn & Suites for $8.3 million and a Sacramento Hilton Garden Inn for $21.5 million. It expects those closings in the fourth quarter. In the third quarter it recognized an impairment loss of about $4.3 million on one hotel under contract. Including those sales, it has sold or contracted to sell 13 hotels for about $154 million since the start of 2025. Knight said the company is recycling capital out of older assets and intends to redeploy proceeds.

In July the company amended its unsecured $1.2 billion credit facility to about $1.3 billion, extending and staggering maturities, and increased a $130 million term loan to $160 million with a seven-year maturity extension. After the transactions it said it has no significant debt maturities until 2029. Total debt to total capitalization, net of cash, was 27.5% at September 30, 2026, down from 36.5% at March 31, 2026. Cash was about $43 million and revolving availability about $700 million. Subsequent to quarter-end it repaid a $49.6 million mortgage on three properties.

The company paid $0.24 a share in distributions in the quarter. Based on the November 3 closing price of $18.65, it said the annualized regular monthly cash distribution of $0.96 a share represents a yield of about 5.1%. It currently expects monthly distributions to continue, subject to board approval.

Knight said that as the company looks ahead to 2027, sustained demand momentum and muted new supply create a meaningful tailwind, and it expects to build on this year’s results.