APLE Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Wed, May 6, 2026 astatine 8:53 AM CDT 34 min read

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Date

May 5, 2026, 10 a.m. ET

Call participants

• Chief Executive Officer — Justin Knight

• Chief Financial Officer — Liz Perkins

Full Conference Call Transcript

This morning, Justin Knight, our Chief Executive Officer; and Liz Perkins, our Chief Financial Officer, volition supply an overview of our results for the archetypal 4th 2026 and an operational outlook for the remainder of the year. Unless different stated, each changes successful show metrics notation to year-over-year changes for the comparable period. Following the overview, we volition unfastened the telephone for Q&A. At this time, it is my pleasance to crook the telephone implicit to Justin.

Justin Knight: Good morning, and convey you for joining america contiguous for our archetypal 4th 2026 net call. We are pleased to study a beardown commencement to the twelvemonth with comparable hotels RevPAR maturation of much than 2% contempt challenging year-over-year comparisons to the archetypal 4th of 2025. Underscoring the spot of the quarter, astir 2/3 of our hotels delivered RevPAR growth. And connected a same-store basis, RevPAR grew astir 3% with borderline expansion. The businesslike operating exemplary of our hotels, combined with our prudent absorption of expenses, enabled america to present meaningful flow-through of apical enactment improvements to bottommost enactment performance, resulting successful maturation crossed comparable hotels adjusted edifice EBITDA, adjusted EBITDAre and modified funds from operations.

Demand momentum has continued into the 2nd quarter. Preliminary reports for the period of April bespeak comparable hotels RevPAR maturation of implicit 4%, supported by continued spot successful request and the payment of favorable year-over-year comparisons related to the antagonistic effects of DOGE, Liberation Day and the resulting wide macroeconomic uncertainty. While the ongoing struggle successful the Middle East and its effects connected planetary vigor markets adds to an uncertain geopolitical and economical backdrop, our broadly diversified rooms-focused portfolio continues to show request resilience. Improving occupancy and guardant booking trends springiness america assurance heading into the summertime months. Reflecting our year-to-date outperformance, we are raising our afloat twelvemonth RevPAR guidance 100 ground points to 1% astatine the midpoint.

The revised scope maintains a measured presumption of the twelvemonth ahead, and we judge it could yet beryllium conservative. Transient request has been stronger than anticipated. Early summertime show whitethorn payment from incremental leisure question tied to the FIFA World Cup, and we are opening to thigh periods negatively affected by reduced authorities spending, tariff-related disruption and past year's authorities shutdown. Taken together, these factors correspond imaginable upside not afloat reflected successful our updated outlook. Disciplined superior allocation has been cardinal to our occurrence implicit decades successful the lodging industry. We prudently equilibrium near- and semipermanent concern decisions to capitalize connected existent opportunities portion positioning for the future.