Apple Hospitality REIT, Inc. (NYSE:APLE) Q3 2019 Earnings Conference Call - Final Transcript

Nov 05, 2019 • 08:00 am ET


Apple Hospitality REIT, Inc. (NYSE:APLE) Q3 2019 Earnings Conference Call - Final Transcript


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Greetings, Welcome to Apple Hospitality REIT Third Quarter 2019 Earnings Call. [Operator Instructions]

I will now turn the conference over to your host Kelly Clarke Vice President Investor Relations. Thank you. You may begin.

Kelly Clarke

Thank you and good morning. We welcome you to Apple hospitality reads third quarter 2019 earnings call on this the fifth day of November 2019. Today's call will be based on the third quarter 2019 earnings release and form 10 to which were distributed and file that yesterday afternoon. As a reminder, today's call will contain forward looking statements as defined by federal securities laws including statements regarding future operating results. Statements involved known and unknown risks and other factors which may call it actual results performance or achievements of Apple hospitality, to be materially different from teacher results performance for achievements expressed or implied by such forward looking statements. Participants should carefully review our financial statements and the notes thereto as well as the risk factors described in Apple Hospitality's 2018 Form 10-K and other filings with the SEC. Any forward-looking statements that Apple Hospitality makes speaks only as of today and the company undertakes no obligation to publicly update or revise any forward-looking statements except as required by law. In addition certain non-GAAP measures of performance such as EBITDA EBITDAre adjusted EBITDAre adjusted hotel EBITDA FFO and modified FFO will be discussed during this call.

We encourage participants to review reconciliations of those measures to get measures as included in yesterday's earnings release and other filings with the SEC. For a copy of the earnings release or additional information about the company, please visit Apple hospitality. com This morning Justin Knight our Chief Executive Officer; Krissy Gathright our Chief Operating Officer; and Rachel Rothman our Chief Financial Officer will provide an overview of our results for the third quarter 2019 as well as an outlook for the sector and for the company. Following the overview we will open the call for Q&A.

At this time it is my pleasure to turn the call over to our CEO Justin Knight.

Justin Knight

Thank you Kelly, Good morning and thank you for joining us today. We're in the third quarter of this year performance across our portfolio of hotels which generally aligned with our expectations positively impacted by favorite both calendar shifts and solid trends and demand. We are pleased to report that our diversified portfolio of high quality rooms focus hotels outperform the industry overall, as well as our chain skills during the quarter based on Star data. For our portfolio comparable hotels RevPAR increased by 1.1% for the quarter and 0.4% year-to-date. Comparable hotels ADR increased by 0.2% for the quarter and 0.6% year-to-date and occupancy improved by 70 basis points for the quarter and declined by 20 basis points year-to-date. We remain diligently focused on maximizing profitability and are pleased to report a comparable hotels adjusted hotel EBITDA margin of approximately 38% for the quarter and year-to-date despite ongoing cost and supply pressures. Adjusted EBITDAre was