Justin Knight, CEO of Apple Hospitality REIT, Inc. (NYSE: APLE), participated in a video interview at Nareit’s REITweek: 2023 Investor Conference, held in New York June 6-8.
Knight discussed broad trends across the lodging sector at mid-year and how Apple Hospitality fits within that picture, some of the recent steps Apple Hospitality has taken to optimize its portfolio, as well as the outlook for new supply.
During the interview, Knight noted that:
- Travel trends continue to be “really good” with strength in leisure and improvement in business. That has put Apple Hospitality in a better position to increase rates and improve profitability.
- Apple Hospitality is continually working to optimize the performance of its portfolio given the changing environment. Since 2020, the REIT has sold 25 hotels and bought 14. On average, the purchased hotels are newer and in markets where Apple Hospitality can generate higher rates.
- With elevated construction and borrowing costs, far fewer projects have started construction. About half of Apple Hospitality hotels don’t have any exposure to new construction within a five mile radius, which puts it in a better position to benefit from improvements in demand.