APLE - Apple Hospitality stock slips 3% after in-line Q4 earnings report

Apple Hospitality ( NYSE: APLE ) stock slipped 2.8% on Wednesday after the REIT reported Q4 results largely in line with expectations.

Q4 FFO was $0.33 vs. $0.26 in Q4 2021, while revenue increased 19.4% Y/Y to $299.12M. Occupancy stood at 69.7% vs. 67.5% in Q4 2021, while revPAR jumped 16.1% Y/Y to $102.71.

"Strong business and leisure demand during Q4 enabled us to achieve RevPAR growth of ~7% as compared to Q4 2019," said CEO Justin Knight. "Bottom-line performance for Q4 surpassed Q4 2019 levels, and we believe there is additional upside for our business as corporate demand continues to improve, leisure travel remains strong and additional markets fully recover."

Occupancy was ~64% in January, up 13% Y/Y, driven in part by the impact of the Omicron variant in 2022. ADR growth in January was ~10% compared to January 2022.

Apple Hospitality ( APLE ) expects 2023 adj. EBITDAre of $420M-$457M. Comparable hotels revPAR is projected to increase 3%-7%, and comparable hotels adj. hotel EBITDA margin is estimated to be 35.3%-36.9% vs. 36.8% in 2022.

Shares of Apple Hospitality ( APLE ) gained 6.8% YTD.

Earlier, the REIT declared $0.08 monthly dividend .

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