In light of revenue growth slowing, Knight said Apple Hospitality is focused on managing productivity and expenses to preserve cash flow and value for shareholders.
“We’re also exploring transactions that would be accretive for our shareholders,” Knight said.
Knight pointed out that the acquisition environment has been quiet for the past 12 to 24 months on a relative basis.
“We’re beginning to see renewed interest on the part of sellers and an increased number of buyers. I wouldn’t be surprised to see markets free up as we get later in the year,” he added.
Meanwhile, Knight said new supply continues to be seen in urban and gateway markets and beyond. Rising construction costs, however, are likely to put a brake on new supply growth rates in coming years, he noted.