Justin Knight, president and CEO of Apple Hospitality REIT(NYSE: APLE), sat down for a video interview during Nareit’s REITworld: 2025 Annual Conference in Dallas, Dec. 8–11.
Knight said performance across Apple Hospitality’s broadly diversified portfolio has varied by market this year, reflecting shifting travel patterns. He said one notable headwind has been softer government travel: “Overall, we’ve seen a pullback in government travel, this spring and most recently with the government shutdown,” he said.
That softness has been offset by continued strength in leisure demand, Knight noted: “We’re pleased, however, that leisure travel has been resilient and helped us to maintain overall occupancies,” underscoring the value of diversification across markets and demand segments.
As operating costs remain elevated, margin protection has been a key focus. Knight credited on-site teams and asset managers for disciplined execution. “Our properties, our hotels, are efficient by design and generate industry-leading margins.” Knight added that the company has been able to sustain those margins despite modest demand pullbacks in certain areas.
Looking ahead to 2026, Knight expressed confidence in the setup for the year, citing both easier comparisons and global demand catalysts. “We are the only hospitality REIT with exposure to all of the markets where World Cup events will be hosted,” he said, adding that the company is “optimistic that we’ll see an increase in inbound foreign travel as well.”