Apple Hospitality REIT : Investor Presentation

INVESTOR

PRESENTATION

J U N E 2 0 2 4 • N Y S E : A P L E

F O R WA R D - L O O K I N G S TAT E M E N T S

HYATT HOUSE AND HYATT PLACE TEMPE / PHOENIX / UNIVERSITY

Certain statements made in this presentation are forward-looking statements. These forward-looking statements include statements regarding our intent, belief or current expectations and are based on various assumptions. These statements involve substantial risks and uncertainties. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. Forward-looking statements may include, but are not limited to, statements regarding net asset value and potential trading prices. Words such as "anticipates," "believes," "expects," "estimates," "projects," "plans," "intends," "may," "will," "would," "outlook," "strategy," "targets," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results or outcomes may differ materially from those contemplated by the forward-looking statement. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise any forward-looking statement to reflect changed assumptions or the occurrence of unanticipated events or changes to future operating results, unless required to do so by law. Such factors include, but are not limited to, the ability of Apple Hospitality REIT, Inc. (the "Company," "Apple Hospitality," "Apple" or "APLE") to effectively acquire and dispose of properties and redeploy proceeds; the anticipated timing and frequency of shareholder distributions; the ability of the Company to fund capital obligations; the ability of the Company to successfully integrate pending transactions and implement its operating strategy; changes in general political, economic and competitive conditions and specific market conditions (including the potential effects of inflation or a recessionary environment); reduced business and leisure travel due to geopolitical uncertainty, including terrorism and acts of war; travel-related health concerns, including widespread outbreaks of infectious or contagious diseases in the U.S.; inclement weather conditions, including natural disasters such as hurricanes, earthquakes and wildfires; government shutdowns, airline strikes or equipment failures or other disruptions; adverse changes in the real estate and real estate capital markets; financing risks; changes in interest rates; litigation risks; regulatory proceedings or inquiries; changes in laws or regulations or interpretations of current laws and regulations that impact the Company's business, assets or classification as a real estate investment trust; or other risks detailed in filings made by Apple Hospitality with the Securities and Exchange Commission ("SEC"). Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore there can be no assurance that such statements included in this presentation will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the results or conditions described in such statements or the objectives and plans of the Company will be achieved.

COVER PHOTO: AC HOTEL WASHINGTON DC CONVENTION CENTER	2

C O M PA N Y P R O F I L E A N D P R O V E N I N V E S T M E N T S T R AT E G Y

Apple Hospitality is a publicly traded real estate investment trust that owns one of the largest and most diverse

portfolios of upscale, rooms-focused hotels in the United States.

Scale Ownership of Upscale,	Industry-Leading Brands and	Broad Geographic
			Consistent Reinvestment(1)	Strong, Flexible Balance Sheet(2)
Rooms-Focused Hotels	Operators	Diversification

224	15	37	5 yrs	27%
HO TELS	BRANDS	STATE S	AVERAGE	NET TOTAL DEBT
			EFFECTIVE AGE	TO TOTAL CAPITALIZATION
29,886				78%
GUEST ROOMS				OUTSTANDING DEBT
				EFFECTIVELY FIXED
99%	16	87	4.3	209
ROOMS-FOCUSED	MANAGEMENT COMPANIES	MARKETS	AVERAGE TRIPADVISOR ®	HOTELS UNENCUMBERED
			RATING

Note: Hotel portfolio statistics as of March 31, 2024. The Company's portfolio also includes one non-hotel property. Market categorization based on STR designation.

1. Average Effective Age represents years since hotels were built or last renovated. Average actual age of hotels is 16 years. The Tripadvisor® rating is based on lifetime scores for the Apple Hospitality portfolio of hotels through March 31, 2024.
2. Net Total Debt to Total Capitalization calculation based on (as of March 31, 2024) total debt outstanding, net of cash and cash equivalents ("net total debt outstanding"), divided by net total debt outstanding plus equity market capitalization based on the
   Company's closing share price of $16.38 and outstanding common shares. Based on hotels owned as of March 31, 2024.

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C O M PA N Y O V E R V I E W

$1.3 Billion		$1.60	$238.3 Million
I N R E V E N U E		2 0 2 3 M F F O P E R S H A R E ( 1 )	D I S T R I B U T I O N S P A I D
Full Year 2023		$0.77 Net Income Per Share	In 2023
+21.3 ppts		7 Hotels	+26.9 ppts
TSR Outperformance vs. MSCI US REIT Index				TSR Outperformance vs. Nareit Lodging/Resorts Index
		A C Q U I R E D S I N C E J A N U A R Y 2 0 2 3	for the 2021-2023 Period
for the 2021-2023 Period
EXCHANGE: TICKER				NYSE: APLE
DIVIDEND YIELD at 4/30/2024				6.5% annual yield, annual rate of $0.96 per share, paid monthly
AVERAGE TRADING VOLUME TTM 4/30/2024				2.1 Million shares per day
EQUITY MARKET CAP at 3/31/2024				$4.0 Billion
NET DEBT at 3/31/2024				$1.5 Billion, 27% net total debt outstanding to total capitalization
TOTAL ENTERPRISE VALUE at 3/31/2024				$5.5 Billion
COMPARABLE HOTELS REVENUE(1) TTM 3/31/2024				$1.4 Billion
COMPARABLE HOTELS ADJUSTED HOTEL EBITDA MARGIN(1)	TTM 3/31/2024		36.1%
2024 ESTIMATED CAPEX				$75 Million to $85 Million
EXECUTIVE TARGET COMPENSATION STRUCTURE				78% executive target compensation incentive based

1. See following pages for reconciliation to actual revenue and net income.

Note: Statistics above compare the Company's performance with the performance of specific industry indices using total shareholder return ("TSR"). Net Total Debt to Total Capitalization calculation based on (as of March 31, 2024) total debt

outstanding, net of cash and cash equivalents ("net total debt outstanding"), divided by net total debt outstanding plus equity market capitalization based on the Company's closing share price of $16.38 and outstanding common shares.

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M A N A G E M E N T T E A M W I T H D E E P I N D U S T R Y E X P E R I E N C E O V E R M U LT I P L E H O T E L C Y C L E S

• Average executive tenure with the Apple REIT Companies is 17 years
• Established and operated 8 public hospitality REITs
• Raised and invested approximately $7.4 billion of equity in hotel assets
• Purchased 455 hotels
• Purchased as many as 74 hotels in a single year through individual hotel and small portfolio transactions
• Managed over $1.1 billion in CapEx and renovation spending
• Sold 4 REITs in 3 transactions totaling $2.7 billion
• Merged 3 REITs and listed Company on NYSE
• Completed $1.3 billion Apple REIT Ten merger
• Representation on over 30 brand and industry advisory boards and councils

SPRINGHILL SUITES LOS ANGELES

BURBANK/DOWNTOWN

MISSION

We are a leading real estate investment

company committed to increasing shareholder

value through the distribution of attractive dividends and long-term capital appreciation.

VALUES

Hospitality - We are thoughtful in our interactions with others and know that strong, caring relationships are the core of our industry.

Resolve - We are passionate about the work we do and are steadfast in our commitment to our shareholders.

Excellence - We are driven to succeed and improve through innovation and perseverance.

Integrity - We are trustworthy and accountable.

Teamwork - We support and empower one another, embracing diversity of opinion and

background.5

P R O V E N I N V E S T M E N T S T R AT E G Y

Concentrate on Upscale,	• Efficient operating model yields higher margins
• Resilient group business
rooms-focused hotels	• Scale ownership minimizes relative G&A load and provides fixed cost efficiencies
	• Unparalleled access to data and operational expertise
Align with the best brands in	• Invested in Marriott®, Hilton® and Hyatt® branded hotels with broad consumer appeal which
the rooms-focused category	benefit from strong reservation systems and loyalty programs
Hire industry-leading operators and	• Strong regional and national operators with unique management structure align owner and
	operator to maximize performance in all market environments
maximize performance through	• Analytical data-driven asset management maximizes property-level results
benchmarking and asset management	• Strategic revenue management optimizes mix of business and maximizes bottom-line
	performance
Pursue broad geographic diversification	• Broad geographic diversification reduces portfolio volatility and provides exposure to a wide
	variety of demand generators
Enhance portfolio through accretive acquisitions,	• Well-maintained portfolio with average effective age of 5 years ensures competitiveness
opportunistic dispositions and strategic	• Strategic acquisitions and dispositions optimize portfolio for long-term growth
reinvestment	• Prudent capital allocation preserves balance sheet capacity for investments at optimal point in
cycle
	• Strong balance sheet provides security through cycles
Maintain a strong, flexible balance sheet	• Positioned to pursue accretive opportunities
	• Conservative capital structure with staggered maturities lowers capital costs and preserves
	equity value

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KEY TAKEAWAYS

• Q1 2024 Comparable Hotels RevPAR seasonally stable, despite challenging year-over-year comparisons related to the Super Bowl and the unfavorable shift in timing of the Easter holiday, consistent with the industry overall and ahead of our blended chain scales for the quarter

• Midweek occupancy continues to improve and forward booking trends remain strong

• Preliminary results for Comparable Hotels RevPAR growth for the month of April 2024 above 4%, the high end of our full year guidance range(1)

• Fundamentals strong with more than 56% of our hotels not having any new supply under construction within a five-mile radius

• Acquired six hotels in 2023 and one hotel since beginning of 2024

• Maintained strength and flexibility of balance sheet with availability under revolving credit facility of approximately $519 million at end of Q1 2024

• Seven hotels acquired over the last twelve months yielding nearly 9% after CapEx on a TTM basis, contributing to overall portfolio performance

• Annualized distribution of $0.96 per common share represents an annual yield of 6.5%, based on April 30, 2024 closing price of $14.76

(1) Based on full year guidance provided in the Company's First Quarter 2024 Earnings Release on May 6, 2024.

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HILTON GARDEN INN MADISON DOWNTOWN

Y E A R - O V E R - Y E A R P E R F O R M A N C E

RESIDENCE INN KANSAS CITY OVERLAND PARK

First Quarter 2024 Performance at a Glance

($ in thousands except statistical data and per share amounts)

	Three Months Ended
		March 31,
			% CHANGE
	2024	2023	to 2023
Comparable Hotels RevPAR	$111.09	$111.14	0.0%
Comparable Hotels Total Revenue	$331,580	$326,688	1.5%
Comparable Hotels Adjusted Hotel EBITDA	$111,672	$115,399	(3.2%)
Comparable Hotels Adjusted Hotel EBITDA Margin %	33.7%	35.3%	(160 bps)
Modified Funds From Operations (MFFO)	$83,240	$78,959	5.4%
MFFO per share	$0.34	$0.34	0.0%

Note: Comparable Hotels is defined as the 224 hotels owned by the Company as of March 31, 2024, and excludes one non-hotel property. For hotels acquired during the periods noted, the Company has included, as applicable, results of those hotels for periods prior to the Company's ownership, and for dispositions, results have been excluded for the Company's period of ownership. Results for periods prior to the Company's ownership have not been included in the Company's actual Consolidated Financial Statements and are included only for comparison purposes. Results included for periods prior to the Company's ownership are based on information from the prior owner of each hotel and have not been audited or adjusted. Reconciliation of net income to non-GAAP financial measures is included in the

following pages.

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E F F I C I E N T O P E R AT I O N S

HAMPTON INN & SUITES PORTLAND-PEARL DISTRICT

Rooms-focused operating model produces strong margins

Q1 2024 Hotel EBITDA Margin and RevPAR Comparison

37%
	34%
	31%	31%
			27%	27%	26%	26%
						24%	24%
	$215					$223		20%
				$176	$177		$184	$183
$124	$111	$120	$138			$129

INN

APLE(1)

HST

CLDT

RLJ

PK

XHR

AHT

SHO

DRH

PEB

RevPAR

Upscale & Upper Upscale Combined

Upscale/Rooms-Focused

Upper Upscale/Full-Service

Source: Company filings. Assumptions may vary by company.

1. See explanation and reconciliation of Adjusted Hotel EBITDA to net income included in subsequent pages.

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C O M PA R A B L E H O T E L S O P E R AT I N G T R E N D S

Q1 2024 produced strong Comparable Hotels RevPAR growth relative to 2019,

with continued room for growth in occupancy

Occ

ADR

RevPAR

100%					$167
					$165			$165
		$162		$162								$162
		$158			$157	$159
	$156									$155
90%
									$149
											$144
$141											$138
80%
				$134
		$129
					$128			$127					$126
				$125
			$122				$120	$123
70%	$115												$115
										$105
60%
$90												$93
											$85
50%
40%
30%
20%
10%
64%	73%	79%	77%	77%	81%	78%	77%	78%	77%	70%	62%	65%	74%	78%
0%
Jan 2023	Feb 2023	Mar 2023	Apr 2023	May 2023	Jun 2023	Jul 2023	Aug 2023	Sep 2023	Oct 2023	Nov 2023	Dec 2023	Jan 2024	Feb 2024	Mar 2024
+26%	+22%	+15%	+5%	+6%	+5%	+3%	+3%	+4%	+3%	+3%	+1%	+3%	-	-2%

The Omicron variant impacted performance during Q1

2022, boosting Q1 2023 YOY growth

% Change in RevPAR Compared to Same Period of Prior Year

Note: Comparable Hotels is defined as the 224 hotels owned by the Company as of March 31, 2024, and excludes one non-hotel property. For hotels acquired during the periods noted, the Company has included, as applicable, results of those hotels for periods prior to the Company's ownership, and for dispositions, results have been excluded for the Company's period of ownership. Results for periods prior to the Company's ownership have not been included in the Company's actual Consolidated Financial Statements and are included only for comparison purposes. Results included for periods prior

to the Company's ownership are based on information from the prior owner of each hotel and have not been audited or adjusted.	10