# EDGAR Filing Document

**Accession Number:** 0001418121
**File Stem:** 0001193125-26-204023
**Filing Date:** 2026-5
**Character Count:** 182315
**Document Hash:** 620d0d31e73a8fb059d32ed8de4ff705
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-204023.hdr.sgml**: 20260504

**ACCESSION NUMBER**: 0001193125-26-204023

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 66

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260504

**DATE AS OF CHANGE**: 20260504

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Apple Hospitality REIT, Inc.
- **CENTRAL INDEX KEY:** 0001418121
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 261379210
- **STATE OF INCORPORATION:** VA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37389
- **FILM NUMBER:** 26937831

**BUSINESS ADDRESS:**
- **STREET 1:** 814 EAST MAIN STREET
- **CITY:** RICHMOND
- **STATE:** VA
- **ZIP:** 23219
- **BUSINESS PHONE:** 804.344.8121

**MAIL ADDRESS:**
- **STREET 1:** 814 EAST MAIN STREET
- **CITY:** RICHMOND
- **STATE:** VA
- **ZIP:** 23219

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Apple REIT Nine, Inc.
- **DATE OF NAME CHANGE:** 20071109

?xml version='1.0' encoding='ASCII'? 10-Q

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549** 

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**FORM** 10-Q

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☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**For the quarterly period ended** **March 31,** 2026

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _______ TO _______**

**Commission File Number** 001-37389

APPLE HOSPITALITY REIT, INC.

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| Virginia | 26-1379210 |
| (State or other jurisdiction<br>of incorporation or organization) | (I.R.S. Employer<br>Identification No.) |
| 814 East Main Street<br>Richmond**<u>,</u>** Virginia | 23219 |
| (Address of principal executive offices) | (Zip Code) |

---

**<u>(</u>**804**<u>)</u>** 344-8121

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Shares, no par value | APLE | New York Stock Exchange |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer ☐ <br> Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Number of registrant's common shares outstanding as of April 27, 2026: 236,067,554

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[<u>Index</u>](#index)

**Apple Hospitality REIT, Inc.** 

**Form 10-Q**

**Index** 

---

| | | |
|:---|:---|:---|
|  |  | **Page**<br>**Number** |
| **PART I. FINANCIAL INFORMATION** | **PART I. FINANCIAL INFORMATION** |  |
| Item 1. | [<u>Financial Statements</u>](#item_1_financial_statements) | 3 |
|  | [<u>Consolidated Balance Sheets – March 31, 2026 and December 31, 2025</u>](#consolidated_balance_sheets) | 3 |
|  | &nbsp;&nbsp;[<u>Consolidated Statements of Operations and Comprehensive Income – three months ended March 31, 2026 and 2025</u>](#consolidated_statements_operations_compr) | 4 |
|  | &nbsp;&nbsp;[<u>Consolidated Statements of Shareholders' Equity – three months ended March 31, 2026 and 2025</u>](#consolidated_statements_shareholders_equ) | 5 |
|  | &nbsp;&nbsp;[<u>Consolidated Statements of Cash Flows – three months ended March 31, 2026 and 2025</u>](#consolidated_statements_cash_flows) | 6 |
|  | [<u>Notes to Consolidated Financial Statements</u>](#notes_to_consolidated_financial_statemen) | 7 |
| Item 2. | [<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](#item_2_managements_discussion_analysis_f) | 19 |
| Item 3. | [<u>Quantitative and Qualitative Disclosures About Market Risk</u>](#item_3_quantitative_qualitative_disclosu) | 36 |
| Item 4. | [<u>Controls and Procedures</u>](#item_4_controls_procedures) | 36 |
| **PART II. OTHER INFORMATION** | **PART II. OTHER INFORMATION** |  |
| Item 1. | [<u>Legal Proceedings</u>](#item_1_legal_proceedings_) | 37 |
| Item 2.  | [<u>Unregistered Sales of Equity Securities and Use of Proceeds</u>](#item_2_unregistered_sales) | 37 |
| Item 5. | [<u>Other Information</u>](#item_5_other_information) | 37 |
| Item 6. | [<u>Exhibits</u>](#item_6_exhibits___) | 38 |
| [**<u>Signatures</u>**](#signatures) | [**<u>Signatures</u>**](#signatures) | 39 |

---

This Form 10-Q includes references to certain trademarks or service marks. The AC Hotels by Marriott®, Aloft Hotels®, Courtyard by Marriott®, Fairfield by Marriott®, Marriott® Hotels, Residence Inn by Marriott®, SpringHill Suites by Marriott® and TownePlace Suites by Marriott® trademarks are the property of Marriott International, Inc. or one of its affiliates. The Embassy Suites by Hilton®, Hampton by Hilton®, Hilton Garden Inn®, Home2 Suites by Hilton®, Homewood Suites by Hilton® and Motto by Hilton® trademarks are the property of Hilton Worldwide Holdings Inc. or one of its affiliates. The Hyatt®, Hyatt House® and Hyatt Place® trademarks are the property of Hyatt Hotels Corporation or one of its affiliates. For convenience, the applicable trademark or service mark symbol has been omitted but will be deemed to be included wherever the above referenced terms are used.

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**PART I. FINANCIAL INFORMATION**

**Item 1. Financial Statements**

**Apple Hospitality REIT, Inc.**

**Consolidated Balance Sheets**

**(in thousands, except share data)**

---

| | | |
|:---|:---|:---|
|  | **March 31,** | **December 31,** |
|  | **2026** | **2025** |
|  | **(unaudited)** |  |
| **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment in real estate, net of accumulated depreciation and amortization of<br> $2,012,971 and $1,972,264, respectively | $4757452 | $4787864 |
| &nbsp;&nbsp;&nbsp;&nbsp;Assets held for sale | 8346 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | 7837 | 8515 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash-furniture, fixtures and other escrows | 12944 | 30903 |
| &nbsp;&nbsp;&nbsp;&nbsp;Due from third-party managers, net | 64622 | 32952 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets, net | 43024 | 41944 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Assets** | $4894225 | $4902178 |
| **Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt, net | $1565680 | $1538584 |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance lease liabilities | 110944 | 111094 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and other liabilities | 91091 | 103905 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Liabilities** | 1767715 | 1753583 |
| **Shareholders' Equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, authorized 30,000,000 shares; none issued and outstanding | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, no par value, authorized 800,000,000 shares; issued and outstanding<br> 236,067,554 and 235,635,813 shares, respectively | 4723977 | 4719900 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income | 5082 | 2251 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated distributions greater than net income | (1602549) | (1573556) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Shareholders' Equity** | 3126510 | 3148595 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Liabilities and Shareholders' Equity** | $4894225 | $4902178 |

---

**See notes to consolidated financial statements.**

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**Apple Hospitality REIT, Inc.**

**Consolidated Statements of Operations and Comprehensive Income**

 **(Unaudited)**

**(in thousands, except per share data)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
| **Revenues:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Room | $304657 | $296864 |
| &nbsp;&nbsp;&nbsp;&nbsp;Food and beverage | 16300 | 15511 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 16784 | 15327 |
| Total revenue | 337741 | 327702 |
| **Expenses:** |  |  |
| Hotel operating expense: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating | 88665 | 84510 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hotel administrative | 30970 | 29673 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 29823 | 30286 |
| &nbsp;&nbsp;&nbsp;&nbsp;Utilities | 13232 | 12479 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repair and maintenance | 17840 | 17142 |
| &nbsp;&nbsp;&nbsp;&nbsp;Franchise fees | 16039 | 14553 |
| &nbsp;&nbsp;&nbsp;&nbsp;Management fees | 10368 | 11227 |
| Total hotel operating expense | 206937 | 199870 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property taxes, insurance and other | 22458 | 23361 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 10796 | 9228 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 49537 | 47941 |
| Total expense | 289728 | 280400 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of real estate | - | 3557 |
| **Operating income** | 48013 | 50859 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest and other expense, net | (20072) | (19397) |
| **Income before income taxes** | 27941 | 31462 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | (242) | (241) |
| **Net income** | $27699 | $31221 |
| **Other comprehensive income (loss):** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate derivatives | 2831 | (7034) |
| **Comprehensive income** | $30530 | $24187 |
| **Basic and diluted net income per common share** | $0.12 | $0.13 |
| Weighted average common shares outstanding - basic and diluted | 236112 | 240067 |

---

**See notes to consolidated financial statements.**

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**Apple Hospitality REIT, Inc.**

**Consolidated Statements of Shareholders' Equity**

**(Unaudited)**

**(in thousands, except per share data)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | **Accumulated<br>Other** | **Accumulated Distributions** |  |
|  | **Number<br>of Shares** | **Amount** | **Comprehensive<br>Income (Loss)** | **Greater Than<br>Net Income** | **Total** |
| **Balance at December 31, 2025** | 235636 | $4719900 | $2251 | $(1573556) | $3148595 |
| Share-based compensation, net of common <br> shares surrendered to satisfy employee<br> tax withholding requirements | 410 | 3930 | - | - | 3930 |
| Issuance of common shares, net | 22 | 147 | - | - | 147 |
| Interest rate derivatives | - | - | 2831 | - | 2831 |
| Net income | - | - | - | 27699 | 27699 |
| Distributions declared to shareholders ($0.24<br> per share) | - | - | - | (56692) | (56692) |
| **Balance at March 31, 2026** | 236068 | $4723977 | $5082 | $(1602549) | $3126510 |
| **Balance at December 31, 2024** | 239766 | $4771005 | $15587 | $(1520733) | $3265859 |
| Share-based compensation, net of common <br> shares surrendered to satisfy employee<br> tax withholding requirements | 573 | 6931 | - | - | 6931 |
| Equity issuance costs | - | (272) | - | - | (272) |
| Common shares repurchased | (1931) | (26306) | - | - | (26306) |
| Interest rate derivatives | - | - | (7034) | - | (7034) |
| Net income | - | - | - | 31221 | 31221 |
| Distributions declared to shareholders ($0.24<br> per share) | - | - | - | (57579) | (57579) |
| **Balance at March 31, 2025** | 238408 | $4751358 | $8553 | $(1547091) | $3212820 |

---

**See notes to consolidated financial statements.**

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**Apple Hospitality REIT, Inc.**

**Consolidated Statements of Cash Flows**

**(Unaudited)**

**(in thousands)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
| **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $27699 | $31221 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 49537 | 47941 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of real estate | - | (3557) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other non-cash expenses, net | 1704 | 1707 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in due from third-party managers, net | (31670) | (24458) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in other assets, net | (551) | 670 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in accounts payable and other liabilities | 2138 | (4385) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 48857 | 49139 |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Disbursements for potential acquisitions, net | - | (432) |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital improvements | (35775) | (27289) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net proceeds from sale of real estate | - | 20645 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (35775) | (7076) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net proceeds (disbursements) related to issuance of common shares | 211 | (142) |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchases of common shares | - | (26306) |
| &nbsp;&nbsp;&nbsp;&nbsp;Common shares surrendered to satisfy employee withholding requirements | (1615) | (3275) |
| &nbsp;&nbsp;&nbsp;&nbsp;Distributions paid to common shareholders | (56608) | (69615) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from revolving credit facility | 70100 | 92500 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments on revolving credit facility | (42000) | (27000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments of mortgage debt and other loans | (1602) | (2034) |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal payments on finance leases | (205) | (156) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (31719) | (36028) |
| **Net change in cash, cash equivalents and restricted cash** | (18637) | 6035 |
| **Cash, cash equivalents and restricted cash, beginning of period** | 39418 | 44067 |
| **Cash, cash equivalents and restricted cash, end of period** | $20781 | $50102 |
| **Supplemental cash flow information:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest paid, net | $19264 | $18579 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid | $50 | $39 |
| **Supplemental disclosure of noncash investing and financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued distribution to common shareholders | $18870 | $19053 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued capital expenditures | $6267 | $6010 |
| **Reconciliation of cash, cash equivalents and restricted cash:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents, beginning of period | $8515 | $10253 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash-furniture, fixtures and other escrows, beginning of period | 30903 | 33814 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash, cash equivalents and restricted cash, beginning of period | $39418 | $44067 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents, end of period | $7837 | $14917 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash-furniture, fixtures and other escrows, end of period | 12944 | 35185 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash, cash equivalents and restricted cash, end of period | $20781 | $50102 |

---

**See notes to consolidated financial statements.**

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**Apple Hospitality REIT, Inc.**

**Notes to Consolidated Financial Statements**

**(Unaudited)**

**1. Organization and Summary of Significant Accounting Policies** 

*Organization* 

Apple Hospitality REIT, Inc., formed in November 2007 as a Virginia corporation, together with its wholly-owned subsidiaries (the "Company"), is a self-advised real estate investment trust ("REIT") that invests in income-producing real estate, primarily in the lodging sector, in the United States ("U.S."). The Company's fiscal year end is December 31. The Company has no foreign operations or assets, and its operating structure includes only one reportable segment. The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. Although the Company has interests in potential variable interest entities through its purchase commitments, it is not the primary beneficiary as the Company does not have any elements of power in the decision-making process of these entities; therefore, the Company does not consolidate the entities. As of March 31, 2026, the Company owned 217 hotels with an aggregate of 29,583 guest rooms located in 37 states and the District of Columbia ("D.C."), including one hotel with 124 guest rooms classified as held for sale, which was sold in April 2026. The Company's common shares are listed on the New York Stock Exchange ("NYSE") under the ticker symbol "APLE."

*Basis of Presentation* 

The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include all of the information required by U.S. generally accepted accounting principles ("GAAP") for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited financial statements should be read in conjunction with the Company's audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2025 (the "2025 Form 10-K"). Operating results for the three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for the twelve-month period ending December 31, 2026.

*Use of Estimates* 

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

*Net Income Per Common Share* 

Basic net income per common share is computed based upon the weighted average number of shares outstanding during the period. Diluted net income per common share is calculated after giving effect to all potential common shares that were dilutive and outstanding for the period. Basic and diluted net income per common share were the same for each of the periods presented.

*Accounting Standards Recently Adopted*

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which focuses on income tax disclosures around effective tax rates and cash income taxes paid. This update requires disclosure, on an annual basis, of a tabular rate reconciliation using both percentages and currency amounts, broken out into specified categories with certain reconciling items further broken out by nature and jurisdiction to the extent those items exceed a specified threshold. In addition, all entities are required to disclose income taxes paid, net of refunds received, disaggregated by federal, state/local, and foreign and by jurisdiction if the amount is at least 5% of total income tax payments, net of refunds received. The new standard is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The amendments in this ASU had the option of being applied prospectively by providing the revised disclosures for the period ending December 31, 2025 and continuing to provide the pre-ASU disclosures for the prior periods, or the amendments had the option of being applied retrospectively by providing the revised disclosures for all periods presented. The Company adopted this ASU within the 2025 Form 10-K using the retrospective approach for all periods presented. The adoption of this ASU only impacted disclosures with no impact on the Company's consolidated financial statements.

*Accounting Standards Recently Issued* 

In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which focuses on improving the disclosures about a public business entity's amounts and types of expenses. The update mandates that an entity disclose the amounts of specific natural expense categories—such as purchases of inventory, employee compensation, depreciation, intangible asset

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amortization, and depletion—within relevant expense captions presented on the face of the income statement. Additionally, an entity must disclose qualitative descriptions of the composition of any remaining expense not separately disaggregated and disclose the total amount of selling expenses, and in annual reporting periods, its definition of selling expenses. The new standard is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The amendments in this ASU may be applied prospectively by providing the revised disclosures for the period ending December 31, 2027 and continuing to provide the pre-ASU disclosures for the prior periods, or the amendments may be applied retrospectively by providing the revised disclosures for all periods presented. As of March 31, 2026, the Company has not adopted this ASU and is currently evaluating the impact of this ASU on the Company's consolidated financial statements and related disclosures.

**2. Investment in Real Estate** 

The Company's investment in real estate consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | **March 31,** | **December 31,** |
|  | **2026** | **2025** |
| Land | $840101 | $841027 |
| Building and improvements | 5142663 | 5137909 |
| Furniture, fixtures and equipment | 650945 | 649910 |
| Finance ground lease assets | 102084 | 102084 |
| Franchise fees | 34630 | 29198 |
|  | 6770423 | 6760128 |
| Less accumulated depreciation and amortization | (2012971) | (1972264) |
| Investment in real estate, net | $4757452 | $4787864 |

---

As of March 31, 2026, the Company owned 217 hotels with an aggregate of 29,583 guest rooms located in 37 states and the District of Columbia, including one hotel with 124 guest rooms classified as held for sale, which was sold in April 2026.

As of March 31, 2026, the Company leases all of its 217 hotels to its wholly-owned taxable REIT subsidiary (or a subsidiary thereof) under a master hotel lease agreement.

*Acquisitions*

The Company did not acquire any hotels during the three months ended March 31, 2026. During the year ended December 31, 2025, the Company acquired two hotels. The following table sets forth the location, brand, manager, date acquired, number of guest rooms and gross purchase price, excluding transaction costs, for each property. All dollar amounts are in thousands.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **City** | **State** | **Brand** | **Manager** | **Date<br>Acquired** | **Guest Rooms** | **Gross<br>Purchase<br>Price** |
| Tampa | FL | Homewood Suites | HHM | 6/10/2025 | 126 | $18800 |
| Nashville | TN | Motto | Chartwell | 12/19/2025 | 260 | 98183 |
|  |  |  |  |  | 386 | $116983 |

---

During 2025, the Company utilized available cash, proceeds from the sales of properties, which included proceeds from two separate like-kind exchanges, in accordance with Section 1031 of the Internal Revenue Code of 1986, as amended ("1031 Exchange"), and borrowings under its unsecured credit facilities to purchase the Tampa, Florida and Nashville, Tennessee hotels. The acquisitions of these properties were accounted for as acquisitions of asset groups, whereby costs incurred to effect the acquisitions (which were not significant) were capitalized as part of the cost of the assets acquired.

**3. Assets Held for Sale and Dispositions**

*Assets Held for Sale*

During the first quarter of 2026, the Company entered into a purchase and sale agreement with an unrelated party for the sale of one hotel for a gross sales price of $8.7 million. Since the buyer under the contract completed its due diligence and made a non-refundable deposit, as of March 31, 2026, the Company classified this hotel as assets held for sale on its consolidated balance sheet at its carrying value (which is less than the contract price, net of costs to sell). The Company completed the sale of the hotel in April 2026.

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*Dispositions*

There were no dispositions during the three months ended March 31, 2026. During the year ended December 31, 2025, the Company sold seven hotels to five unrelated parties for a combined gross sales price of approximately $73.3 million, resulting in a combined gain on the sales of approximately $13.1 million, net of transaction costs, which was included in the Company's consolidated statement of operations for the year ended December 31, 2025. The seven hotels had a total carrying value of approximately $58.9 million at their respective times of sale. The following table lists the seven hotels sold in 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
| **City** | **State** | **Brand** | **Date Sold** | **Guest Rooms** |
| Chattanooga | TN | Homewood Suites | 2/12/2025 | 76 |
| Indianapolis | IN | SpringHill Suites | 3/19/2025 | 130 |
| Houston | TX | Marriott | 8/18/2025 | 206 |
| Clovis | CA | Hampton | 11/5/2025 | 86 |
| Clovis | CA | Homewood Suites | 11/5/2025 | 83 |
| Cedar Rapids | IA | Hampton | 11/25/2025 | 103 |
| Cedar Rapids | IA | Homewood Suites | 11/25/2025 | 95 |
| Total |  |  |  | 779 |

---

Excluding gains on sale of real estate, the Company's consolidated statements of operations include operating income (loss) of approximately $(0.1) million and $0.2 million for the three months ended March 31, 2026 and 2025, respectively, relating to the results of operations of the eight hotels noted above (the one hotel classified as held for sale at March 31, 2026 and the seven hotels sold in 2025) for the period of ownership. The sale of these properties does not represent a strategic shift that has, or will have, a major effect on the Company's operations and financial results; therefore, the operating results for the period of ownership of these properties are included in income from continuing operations for the three months ended March 31, 2026 and 2025, as applicable. A portion of the proceeds from the sale of the hotel in March 2025 was used to complete a 1031 Exchange for the acquisition of the Homewood Suites in Tampa, Florida, as discussed above in Note 2, which resulted in the deferral of taxable gains of approximately $2.4 million. Similarly, a portion of the proceeds from the sale of two hotels in the fourth quarter was used to complete a 1031 Exchange for the acquisition of the Motto in Nashville, Tennessee, as discussed above in Note 2, which resulted in the deferral of taxable gains of approximately $4.0 million. The net proceeds from the sales of the remaining four hotels in 2025 were used for share repurchases and other general corporate purposes.

**4. Debt** 

*Summary* 

As of March 31, 2026 and December 31, 2025, the Company's debt consisted of the following (in thousands):

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| | | |
|:---|:---|:---|
|  | **March 31,<br>2026** | **December 31,<br>2025** |
| Revolving credit facility | $89100 | $61000 |
| Term loans and senior notes, net | 1294394 | 1293841 |
| Mortgage debt, net | 182186 | 183743 |
| Debt, net | $1565680 | $1538584 |

---

The aggregate amounts of principal payable under the Company's total debt obligations as of March 31, 2026 (including the Revolving Credit Facility (if any) (as defined below), term loans, senior notes and mortgage debt), for the remainder of this fiscal year, each of the next four fiscal years and thereafter are as follows (in thousands):

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| | |
|:---|:---|
| 2026 (April - December) | $292147 |
| 2027 | 278602 |
| 2028 | 334066 |
| 2029 | 162294 |
| 2030 | 460016 |
| Thereafter | 44638 |
|  | 1571763 |
| Unamortized debt issuance costs | (6083) |
| Total | $1565680 |

---

------

The Company uses interest rate swaps to manage its interest rate risk on a portion of its variable-rate debt. Throughout the terms of these interest rate swaps, the Company pays a fixed rate of interest and receives a floating rate of interest equal to the annual Secured Overnight Financing Rate ("SOFR") for a one-month term ("one-month SOFR"). Prior to March 2026, nine out of the eleven swaps also included an additional 0.10% SOFR spread adjustment. In March 2026, the Company amended the nine interest rate swaps to remove the 0.10% SOFR spread adjustment. Therefore, as of March 31, 2026, all eleven interest rate swaps receive a floating rate of interest equal to the one-month SOFR with no additional spread adjustment. The swaps are designed to effectively fix the interest payments on variable-rate debt instruments. See Note 5 for more information on the interest rate swap agreements. The Company's total fixed-rate and variable-rate debt, after giving effect to its interest rate swaps in effect as of March 31, 2026 and December 31, 2025, is set forth below. All dollar amounts are in thousands.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31,<br>2026** | **Percentage** | **December 31,<br>2025** | **Percentage** |
| Fixed-rate debt <sup>(1)</sup> | $992663 | 63% | $994265 | 64% |
| Variable-rate debt | 579100 | 37% | 551000 | 36% |
| Total | $1571763 |  | $1545265 |  |
| Weighted-average interest rate of debt | 4.65% |  | 4.70% |  |

---

------

(1)Fixed-rate debt includes the portion of variable-rate debt where the interest payments have been effectively fixed by interest rate swaps as of the respective balance sheet date. See Note 5 for more information on the interest rate swap agreements.

*Credit Facilities* 

As of March 31, 2026 and December 31, 2025, the details of the Company's unsecured credit facilities were as set forth in the table below. All dollar amounts are in thousands.

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| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | **Outstanding Balance** | **Outstanding Balance** |
|  | **Interest Rate** | **Maturity<br>Date** | **March 31, 2026** | **December 31, 2025** |
| Revolving credit facility <sup>(1)</sup> | SOFR + 1.40% to 2.25%<br><sup>(2)</sup> | 7/25/2026<br><sup>(3)</sup> | $89100 | $61000 |
| Term loans and senior notes |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;$275 million term loan | SOFR + 1.35% to 2.20%<br><sup>(2)</sup> | 7/25/2027 | 275000 | 275000 |
| &nbsp;&nbsp;&nbsp;&nbsp;$300 million term loan | SOFR + 1.35% to 2.20%<br><sup>(2)</sup> | 1/31/2028 | 300000 | 300000 |
| &nbsp;&nbsp;&nbsp;&nbsp;$385 million term loan | SOFR + 1.35% to 2.20% | 7/31/2030 | 385000 | 385000 |
| &nbsp;&nbsp;&nbsp;&nbsp;$130 million term loan | SOFR + 1.35% to 2.20%<br><sup>(2)</sup> | 7/25/2026<br><sup>(4)</sup> | 130000 | 130000 |
| &nbsp;&nbsp;&nbsp;&nbsp;$85 million term loan | SOFR + 1.70% to 2.55%<br><sup>(2)</sup> | 12/31/2029 | 85000 | 85000 |
| &nbsp;&nbsp;&nbsp;&nbsp;$50 million senior notes | 3.60% to 4.35% | 3/31/2030 | 50000 | 50000 |
| &nbsp;&nbsp;&nbsp;&nbsp;$75 million senior notes | 4.88% to 5.63% | 6/2/2029 | 75000 | 75000 |
| Term loans and senior notes at stated value | Term loans and senior notes at stated value |  | 1300000 | 1300000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unamortized debt issuance costs |  |  | (5606) | (6159) |
| Term loans and senior notes, net |  |  | 1294394 | 1293841 |
| Credit facilities, net <sup>(1)</sup> |  |  | $1383494 | $1354841 |
| Weighted-average interest rate <sup>(5)</sup> |  |  | 4.77% | 4.83% |

---

------

(1)Excludes unamortized debt issuance costs related to the Revolving Credit Facility (as defined below) totaling approximately $0.5 million and $0.8 million as of March 31, 2026 and December 31, 2025, respectively, which are included in other assets, net in the Company's consolidated balance sheets.

(2)In March 2026, the Company amended the terms of the Revolving Credit Facility and each unsecured term loan, as applicable, to remove the 0.10% SOFR spread adjustment.

(3)The Revolving Credit Facility matures on July 25, 2026, but it can be extended up to one year, subject to certain conditions including covenant compliance and payment of additional fees. The Company presently has the ability to exercise this extension; however, it plans to pursue refinancing of the maturing debt.

(4)This loan matures on July 25, 2026, but it can be extended up to one year, subject to certain conditions including covenant compliance and payment of additional fees. The Company presently has the ability to exercise this extension; however, it plans to pursue refinancing of the maturing debt.

(5)Interest rate represents the weighted-average effective annual interest rate at the balance sheet date which includes the effect of interest rate swaps in effect on $685.0 million of the outstanding variable-rate debt as of March 31, 2026 and December 31, 2025. See Note 5 for more information on the interest rate swap agreements. The one-month SOFR on March 31, 2026 and December 31, 2025 was 3.66% and 3.69%, respectively.

------

For the unsecured credit facilities noted in the table above, the Company may make voluntary prepayments, in whole or in part, at any time, subject to certain conditions. The revolving credit facility has a maximum borrowing capacity of $650 million (the "Revolving Credit Facility"). Subject to certain conditions, including covenant compliance and payment of additional fees, the Revolving Credit Facility maturity date may be extended up to one year. As of March 31, 2026, the Company had availability of approximately $558.8 million under the Revolving Credit Facility after taking into account a $2.1 million letter of credit. The Company is also required to pay quarterly an unused facility fee at an annual rate of 0.20% or 0.25% on the unused portion of the Revolving Credit Facility, based on the amount of borrowings outstanding during the quarter. Interest on the Revolving Credit Facility and the unsecured term loans, subject to certain exceptions, is generally payable monthly, with interest rates that have historically been equal to the one-month SOFR plus a 0.10% SOFR spread adjustment plus a margin (margin ranges shown in the table above), based upon the Company's leverage ratio, as calculated under the terms of each respective credit agreement. In March 2026, the Company amended the terms of the Revolving Credit Facility and each unsecured term loan to remove the 0.10% SOFR spread adjustment, with the exception of the $385 million term loan facility, which did not include the 0.10% SOFR spread adjustment. Interest payments on the senior notes are due quarterly, and the interest rates, subject to certain exceptions, have a range of annual rates (shown in the table above) based on the Company's leverage ratio, as calculated under the terms of each respective note agreement.

<u>Credit Facilities Covenants</u>

The credit agreements governing the unsecured credit facilities contain customary affirmative and negative covenants, restrictions on certain investments and events of default. The credit agreements require that the Company comply with various covenants, which include, among others, a minimum tangible net worth, maximum debt limits, minimum interest and fixed charge coverage ratios, and restrictions on certain investments. Refer to Note 4 of the Company's 2025 Form 10-K for additional details. The Company was in compliance with the applicable covenants as of March 31, 2026.

*Mortgage Debt* 

As of March 31, 2026, the Company had approximately $182.7 million in outstanding mortgage debt secured by 10 properties with maturity dates ranging from June 2026 to May 2038, and both stated interest rates and effective interest rates ranging from 3.40% to 4.37%. The loans generally provide for monthly payments of principal and interest on an amortized basis and defeasance or prepayment penalties if prepaid. The following table sets forth the hotel properties securing each loan, the interest rate, loan assumption or origination date, maturity date, the principal amount assumed or originated, and the outstanding balance prior to any debt issuance costs as of March 31, 2026 and December 31, 2025 for each of the Company's mortgage debt obligations. All dollar amounts are in thousands.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Location** | **Brand** | **Interest Rate** | **Loan Assumption or Origination Date** | **Maturity Date** | **Principal Assumed or Originated** | **Outstanding balance as of<br>March 31, 2026** | **Outstanding balance as of<br>December 31, 2025** |
| Boise, ID | Hampton | 4.37% | 5/26/2016 | 6/11/2026<br><sup>(1)</sup> | 24000 | 19455 | 19601 |
| Burbank, CA | Courtyard | 3.55% | 11/3/2016 | 12/1/2026<br><sup>(1)</sup> | 25564 | 18620 | 18839 |
| San Diego, CA | Courtyard | 3.55% | 11/3/2016 | 12/1/2026<br><sup>(1)</sup> | 25473 | 18553 | 18772 |
| San Diego, CA | Hampton | 3.55% | 11/3/2016 | 12/1/2026<br><sup>(1)</sup> | 18963 | 13812 | 13975 |
| Burbank, CA | SpringHill Suites | 3.94% | 3/9/2018 | 4/1/2028 | 28470 | 22271 | 22498 |
| Santa Ana, CA | Courtyard | 3.94% | 3/9/2018 | 4/1/2028 | 15530 | 12148 | 12272 |
| Richmond, VA | Courtyard | 3.40% | 2/12/2020 | 3/11/2030 | 14950 | 13087 | 13174 |
| Richmond, VA | Residence Inn | 3.40% | 2/12/2020 | 3/11/2030 | 14950 | 13087 | 13174 |
| Portland, ME | Residence Inn | 3.43% | 3/2/2020 | 3/1/2032 | 33500 | 30500 | 30500 |
| San Jose, CA | Homewood Suites | 4.22% | 12/22/2017 | 5/1/2038 | 30000 | 21130 | 21460 |
|  |  |  |  |  | $231400 | 182663 | 184265 |
| Unamortized debt issuance costs | Unamortized debt issuance costs |  |  |  |  | (477) | (522) |
| Total |  |  |  |  |  | $182186 | $183743 |

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------

(1)The Company plans to pay the outstanding amount and service payments due upon the upcoming debt maturity date using funds from operations, borrowings under its Revolving Credit Facility and/or proceeds from new financing.

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**5. Fair Value of Financial Instruments**

Except as described below, the carrying value of the Company's financial instruments approximates fair value due to the short-term nature of these financial instruments.

*Debt*

The Company estimates the fair value of its debt by discounting the future cash flows of each instrument at estimated market rates consistent with the maturity of a debt obligation with similar credit terms and credit characteristics, which are Level 3 inputs under the fair value hierarchy. Market rates take into consideration general market conditions and maturity. As of March 31, 2026, both the carrying value and the estimated fair value of the Company's debt were approximately $1.6 billion. As of December 31, 2025, both the carrying value and estimated fair value of the Company's debt were approximately $1.5 billion. Both the carrying value and the estimated fair value of the Company's debt (as discussed above) are net of unamortized debt issuance costs related to term loans, senior notes and mortgage debt for each specific year.

*Derivative Instruments*

Currently, the Company uses interest rate swaps to manage its interest rate risk on variable-rate debt. Throughout the terms of these interest rate swaps, the Company pays a fixed rate of interest and receives a floating rate of interest equal to the one-month SOFR. Prior to March 2026, nine out of the eleven swaps also included an additional 0.10% SOFR spread adjustment. In March 2026, the Company amended the nine interest rate swaps to remove the 0.10% SOFR spread adjustment. Therefore, as of March 31, 2026, all eleven interest rate swaps receive a floating rate of interest equal to the one-month SOFR with no additional spread adjustment. The swaps are designed to effectively fix the interest payments on variable-rate debt instruments. These swap instruments are recorded at fair value and, if in an asset position, are included in other assets, net, and, if in a liability position, are included in accounts payable and other liabilities in the Company's consolidated balance sheets. The fair values of the Company's interest rate swap agreements are determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts, which is considered a Level 2 measurement under the fair value hierarchy. The variable cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The following table sets forth information for each of the Company's interest rate swap agreements outstanding as of March 31, 2026 and December 31, 2025. All dollar amounts are in thousands.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  | **Fair Value Asset (Liability)** | **Fair Value Asset (Liability)** |
| **Notional Amount at<br>March 31, 2026** | **Origination<br>Date** | **Effective<br>Date** | **Maturity<br>Date** | **Swap Fixed<br>Interest<br>Rate** | **March 31,<br>2026** | **December 31,<br>2025** |
| <u>Active interest rate swaps designated as cash flow hedges at March 31, 2026:</u> | <u>Active interest rate swaps designated as cash flow hedges at March 31, 2026:</u> | <u>Active interest rate swaps designated as cash flow hedges at March 31, 2026:</u> | <u>Active interest rate swaps designated as cash flow hedges at March 31, 2026:</u> | <u>Active interest rate swaps designated as cash flow hedges at March 31, 2026:</u> |  |  |
| $75000 | 8/21/2019 | 5/18/2021 | 5/18/2026 | 1.19% | $242 | $688 |
| 125000 | 11/3/2023 | 11/3/2023 | 11/18/2026 | 4.41% | (586) | (1061) |
| 50000 | 8/2/2024 | 8/2/2024 | 8/18/2027 | 3.53% | 64 | (196) |
| 50000 | 8/1/2024 | 8/5/2024 | 8/31/2027 | 3.74% | (73) | (373) |
| 50000 | 3/17/2023 | 3/20/2023 | 3/18/2028 | 3.40% | 173 | (133) |
| 50000 | 3/17/2023 | 3/20/2023 | 3/20/2028 | 3.39% | 175 | (144) |
| 50000 | 8/1/2024 | 8/5/2024 | 8/18/2028 | 3.65% | (124) | (491) |
| 50000 | 8/1/2025 | 8/1/2025 | 8/31/2028 | 3.38% | 203 | (114) |
| 50000 | 8/1/2025 | 8/1/2025 | 8/31/2028 | 3.38% | 212 | (117) |
| 50000 | 7/11/2024 | 7/18/2024 | 7/18/2029 | 3.86% | (513) | (890) |
| 85000 | 12/31/2019 | 12/31/2019 | 12/31/2029 | 1.77% | 5309 | 5082 |
| $685000 |  |  |  |  | $5082 | $2251 |

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The Company assesses, both at inception and on an ongoing basis, the effectiveness of its qualifying cash flow hedges. As of March 31, 2026, all 11 active interest rate swap agreements listed above were designated as cash flow hedges. The change in the fair value of the Company's designated cash flow hedges is recorded to accumulated other comprehensive income, a component of shareholders' equity in the Company's consolidated balance sheets.

Amounts reported in accumulated other comprehensive income will be reclassified to interest and other expense, net as interest payments are made or received on the Company's variable-rate derivatives. The Company estimates that approximately $1.7 million of net unrealized gains included in accumulated other comprehensive income at March 31, 2026 will be reclassified as a decrease to interest and other expense, net within the next 12 months.

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The following table presents the effect of derivative instruments in cash flow hedging relationships in the Company's consolidated statements of operations and comprehensive income for the three months ended March 31, 2026 and 2025 (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Net Unrealized Gain (Loss)<br>Recognized in Other <br>Comprehensive Income (Loss)** | **Net Unrealized Gain (Loss)<br>Recognized in Other <br>Comprehensive Income (Loss)** | **Net Unrealized Gain Reclassified<br>from Accumulated Other<br>Comprehensive Income to Interest<br>and Other Expense, net** | **Net Unrealized Gain Reclassified<br>from Accumulated Other<br>Comprehensive Income to Interest<br>and Other Expense, net** |
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** | **2026** | **2025** |
| Interest rate derivatives in cash flow<br> hedging relationships | $3625 | $(4490) | $794 | $2544 |

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**6. Related Parties** 

The Company has engaged in, and is expected to continue to engage in, transactions with related parties. These transactions cannot be construed as being at arm's length, and the results of the Company's operations may have been different if these transactions were conducted with non-related parties. There have been no changes to the contracts and relationships discussed in the 2025 Form 10-K. Below is a summary of the significant related party relationships in effect during the three months ended March 31, 2026 and 2025.

Glade M. Knight, Executive Chairman of the Company, owns Apple Realty Group, Inc. ("ARG"), which receives support services from the Company and reimburses the Company for the cost of these services as discussed below. Mr. Knight is also currently a partner and Chief Executive Officer of Energy 11 GP, LLC and Energy Resources 12 GP, LLC, which are the respective general partners of Energy 11, L.P. and Energy Resources 12, L.P., each of which receives support services from ARG.

The Company provides support services, including the use of the Company's employees and corporate office, to ARG and is reimbursed by ARG for the cost of these services. Under this cost sharing structure, amounts reimbursed to the Company include both compensation for personnel and office related costs (including office rent, utilities, office supplies, etc.) used by ARG. The amounts reimbursed to the Company are based on the actual costs of the services and a good faith estimate of the proportionate amount of time incurred by the Company's employees on behalf of ARG. Total reimbursed costs allocated by the Company to ARG for the three months ended March 31, 2026 and 2025 totaled approximately $0.3 million for each respective period, and are recorded as a reduction to general and administrative expenses in the Company's consolidated statements of operations.

As part of the cost sharing arrangement, certain day-to-day transactions may result in amounts due to or from the Company and ARG. To efficiently manage cash disbursements, the Company or ARG may make payments for the other company. Under this cash management process, each company may advance or defer up to $1 million at any time. Each quarter, any outstanding amounts are settled between the companies. This process allows each company to minimize its cash on hand and reduces the cost for each company. The amounts outstanding at any point in time are not significant to either of the companies. As of March 31, 2026 and December 31, 2025, total amounts due from ARG for reimbursements under the cost sharing structure totaled approximately $0.3 million and $0.5 million, respectively, and are included in other assets, net in the Company's consolidated balance sheets.

The Company, through its wholly-owned subsidiary, Apple Air Holding, LLC, owns an aircraft used primarily for acquisition, asset management, renovation, investor, corporate and public relations and other business purposes. The aircraft may from time to time be leased to affiliates of the Company based on third-party rates. Lease activity was not significant during the reporting periods.

From time to time, the Company utilizes aircraft, owned by an entity that is owned by the Company's Executive Chairman, for acquisition, asset management, renovation, investor, corporate and public relations and other business purposes, and reimburses this entity at third-party rates. Total costs incurred for the use of the aircraft during the three months ended March 31, 2026 were less than $0.1 million and are included in general and administrative expenses in the Company's consolidated statements of operations. The Company did not use these aircraft during the three months ended March 31, 2025.

**7. Shareholders' Equity**

*Distributions* 

For the three months ended March 31, 2026, the Company paid distributions of $0.24 per common share for a total of $56.6 million. During the three months ended March 31, 2025, the Company paid distributions of $0.29 per common share, for a total of $69.6 million. Additionally, in March 2026, the Company declared a monthly cash distribution of $0.08 per common share, totaling $18.9 million, which was recorded as a payable as of March 31, 2026 and paid on April 15, 2026. Distributions declared but not paid at the balance sheet date are included in accounts payable and other liabilities in the Company's consolidated balance sheets as of March 31, 2026 and December 31, 2025, respectively.

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*Issuance of Shares*

On February 23, 2024, the Company entered into an equity distribution agreement pursuant to which the Company may sell, from time to time, up to an aggregate of $500 million of its common shares under an at-the-market offering program (the "ATM Program") under the Company's current shelf registration statement. The Company did not sell any common shares under the ATM Program during the three months ended March 31, 2026 or during the year ended December 31, 2025. As of March 31, 2026, $500 million remained available for issuance under the ATM Program. The Company plans to use future net proceeds from the sale of shares under the ATM Program, or under a similar successor program, for general corporate purposes, which may include, among other things, acquisitions of additional properties, the repayment of outstanding indebtedness, capital expenditures, improvement of properties in its portfolio and working capital. The Company may also use the future net proceeds to acquire another REIT or other company that invests in income-producing properties.

*Share Repurchases*

In May 2025, the Company's Board of Directors approved a one-year extension of its existing share repurchase program, authorizing share repurchases up to an aggregate of $262.6 million (the "Share Repurchase Program"). The Share Repurchase Program may be suspended or terminated at any time by the Company and will end in July 2026 if not terminated or extended earlier. The Company previously entered into, and expects to continue to enter into, written trading plans as part of the Share Repurchase Program that provide for share repurchases in open market transactions that are intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company did not repurchase any common shares during the three months ended March 31, 2026. During the three months ended March 31, 2025, the Company purchased, under its Share Repurchase Program, approximately 1.9 million of its common shares at a weighted-average market purchase price of approximately $13.61 per common share for an aggregate purchase price, including commissions, of approximately $26.3 million. Purchases under the Share Repurchase Program have been funded, and the Company intends to fund future share repurchases, with cash on hand, proceeds from dispositions or availability under its unsecured credit facilities, subject to applicable restrictions under the Company's unsecured credit facilities (if any). The timing of share repurchases and the number of common shares to be purchased under the Share Repurchase Program will also depend upon prevailing market conditions, regulatory requirements and other factors. As of March 31, 2026, approximately $242.5 million remained available for purchase under the Share Repurchase Program.

**8. Compensation Plans**

The Company annually establishes an incentive compensation plan for its executive management team, which is approved by the Compensation Committee. Under the incentive compensation plan for 2026 (the "2026 Incentive Plan"), participants are eligible to receive incentive compensation based on the achievement of certain 2026 performance measures, with one-half (50%) of incentive compensation based on operational metrics and performance goals and one-half (50%) of incentive compensation based on shareholder return metrics. With respect to the shareholder return metrics, 75% of the target will be based on shareholder return relative to a peer group and 25% will be based on total shareholder return metrics over one-year, two-year, and three-year periods. With respect to the operational metrics and performance goals, 75% of the operational performance target will be based on the following metrics: Comparable Hotels RevPAR growth, Comparable Hotels Adjusted Hotel EBITDA margin, Adjusted EBITDAre and Modified Funds from Operations per share, equally weighted at 18.75% (non-GAAP financial measures are defined elsewhere within this Quarterly Report on Form 10-Q). The remaining 25% of the operational performance target will be based on the management of balance sheet maturities and allocation of capital to drive shareholder returns. As of March 31, 2026, the range of potential aggregate payouts under the 2026 Incentive Plan was $0 - $30.3 million. Based on performance through March 31, 2026, the Company has accrued approximately $3.8 million as a liability for potential executive incentive compensation payments under the 2026 Incentive Plan, which is included in accounts payable and other liabilities in the Company's consolidated balance sheet as of March 31, 2026 and in general and administrative expenses in the Company's consolidated statement of operations for the three months ended March 31, 2026. Approximately 25% of target awards under the 2026 Incentive Plan, if any, will be paid in cash, and 75% will be issued in common shares under the Company's 2024 Omnibus Incentive Plan, approximately two-thirds of which will be unrestricted and one-third of which will vest in December 2027.

Under the incentive compensation plan for 2025 (the "2025 Incentive Plan"), the Company recorded approximately $3.4 million for executive incentive compensation in general and administrative expenses in its consolidated statement of operations for the three months ended March 31, 2025.

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*Share-Based Compensation Awards* 

The following table sets forth information pertaining to the executive share-based compensation issued under the 2025 Incentive Plan and the incentive plan for 2024 (the "2024 Incentive Plan").

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| | | |
|:---|:---|:---|
|  | **2025 Incentive<br>Plan** | **2024 Incentive<br>Plan** |
| Period common shares issued | First Quarter 2026 | First Quarter 2025 |
| Common shares earned under each incentive plan | 496996 | 766601 |
| Common shares surrendered on issuance date to <br> satisfy tax withholding obligations | 128757 | 221309 |
| Common shares earned and issued under each<br> incentive plan, net of common shares surrendered on<br> issuance date to satisfy tax withholding obligations | 368239 | 545292 |
| Average of the high and low stock price on issuance date | $12.10 | $14.48 |
| Total share-based compensation earned, including the<br> surrendered shares (in millions) | $6.0<br><sup>(1)</sup> | $11.1<br><sup>(2)</sup> |
| Of the total common shares earned and issued, total<br> common shares unrestricted at time of issuance | 175519 | 302438 |
| Of the total common shares earned and issued, total<br> common shares restricted at time of issuance | 192720 | 242854 |
| Restricted common shares vesting date | December 11, 2026 | December 12, 2025 |
| Common shares surrendered on vesting date to satisfy<br> tax withholding requirements resulting from vesting<br> of restricted common shares | n/a | 102615 |

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(1)Of the total 2025 executive share-based compensation, approximately $4.8 million was recorded as a liability as of December 31, 2025 and is included in accounts payable and other liabilities in the Company's consolidated balance sheet at December 31, 2025. Another $1.2 million, which is subject to vesting on December 11, 2026 and excludes any restricted shares forfeited or vested prior to that date, will be recognized as share-based compensation expense proportionately throughout 2026. For the three months ended March 31, 2026, the Company recognized approximately $0.3 million of share-based compensation expense related to restricted share awards.

(2)Of the total 2024 executive share-based compensation, approximately $1.8 million, which vested on December 12, 2025, was recognized as share-based compensation expense proportionately throughout 2025. For the three months ended March 31, 2025, the Company recognized approximately $0.4 million of share-based compensation expense related to restricted share awards.

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**9. Reportable Segments**

The Company owns hotel properties throughout the U.S. that generate guest room rental, food and beverage, and other property-related income. There are no foreign operations from which the Company derives revenues and no assets are held in a foreign country. There are no material concentrations of 10% or more of total revenues allocated to a single customer for the reporting periods presented. The Chief Operating Decision Maker ("CODM") separately evaluates the performance, allocates capital resources and manages the overall operating and investing strategy of each of its hotel properties individually; therefore, the Company considers each hotel to be an operating segment. However, because each hotel is not individually significant, serves a similar class and mix of business and leisure customers, has similar economic characteristics and risks, facilities, and services, utilizes similar methods to distribute their products and services through third-party management companies, and is subject to similar regulatory environments, the properties have been combined into a single operating segment for reporting purposes. The CODM, who is the Chief Executive Officer of the Company, assesses the performance of each operating segment on a monthly basis using adjusted hotel earnings (loss) before interest expense, income taxes and depreciation and amortization ("Adjusted Hotel EBITDA"), the measure by which the CODM makes day-to-day operating decisions, compares actual results with budgeted and prior year results, invests in capital improvements, and performs competitive analysis of the Company's operating performance against industry peers.

Adjusted Hotel EBITDA, presented herein, is calculated as EBITDA from hotel operations with further exclusions as noted below. EBITDA is a commonly used measure of performance in many industries and is defined as net income (loss) excluding interest, income taxes, depreciation and amortization. The Company believes EBITDA is useful to investors because it helps the Company and its investors evaluate the ongoing operating performance of the Company by removing the impact of its capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization). In addition, certain covenants included in the agreements governing the Company's indebtedness use EBITDA, as defined in the specific credit agreement, as a measure of financial compliance. The Company further excludes the following items that are not reflective of its ongoing operating performance or incurred in the normal course of business, and thus not utilized in the CODM's analysis to allocate resources and assess operating performance of the Company's business:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•gains and losses from the sale of certain real estate assets (including gains and losses from change in control);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•real estate related impairments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•non-cash straight-line operating ground lease expense;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•actual corporate-level general and administrative expense for the Company, including share-based compensation expense; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•operating results from the non-hotel property, prior to recovering possession on April 4, 2025.

The Company believes Adjusted Hotel EBITDA provides useful supplemental information to investors regarding operating performance, and it is used by management to measure the performance of the Company's hotels and the effectiveness of the operators of the hotels.

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The following table reconciles the Company's single reportable segment Adjusted Hotel EBITDA to GAAP net income for the three months ended March 31, 2026 and 2025:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
|  | **2026** | **2025** |
| Total revenue | $337741 | $327702 |
| Less: |  |  |
| &nbsp;&nbsp;Significant hotel operating expenses |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating | 88665 | 84510 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hotel administrative | 30970 | 29673 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 29823 | 30286 |
| &nbsp;&nbsp;&nbsp;&nbsp;Utilities | 13232 | 12479 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repair and maintenance | 17840 | 17142 |
| &nbsp;&nbsp;&nbsp;&nbsp;Franchise fees | 16039 | 14553 |
| &nbsp;&nbsp;&nbsp;&nbsp;Management fees | 10368 | 11227 |
| &nbsp;&nbsp;Total significant hotel operating expenses | 206937 | 199870 |
| &nbsp;&nbsp;Property taxes, insurance & other | 22458 | 23361 |
| &nbsp;&nbsp;Other segment items <sup>(1)</sup> | (133) | (794) |
| **Adjusted Hotel EBITDA** | **108479** | **105265** |
| General and administrative | (10796) | (9228) |
| Depreciation and amortization | (49537) | (47941) |
| Gain on sale of real estate | - | 3557 |
| Other segment items <sup>(1)</sup> | (133) | (794) |
| Interest expense, net | (20072) | (19397) |
| Income tax expense | (242) | (241) |
| **Net income** | $**27699** | $**31221** |

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(1)Includes operating results of the New York Property when classified as a non-hotel property through March 2025. On April 4, 2025, the Company recovered possession of the New York Property and reinstated operations of the hotel's 209 guest rooms through a third-party manager engaged by the Company. Additionally, for the three months ended March 31, 2026 and 2025, expenses relating to amortization of favorable and unfavorable operating leases and non-cash straight-line operating ground lease expense are included. These items have been included for the purpose of ensuring their exclusion from Adjusted Hotel EBITDA, as they do not reflect the underlying operating performance of the Company's hotels.

Disclosure of the reportable segment's revenue and profit or loss is included in the Company's consolidated statements of operations and comprehensive income; its assets are presented in the consolidated balance sheets; and its significant noncash items are provided in its consolidated statements of cash flows, all within this Quarterly Report on Form 10-Q. For the three months ended March 31, 2026 and 2025, the Company invested approximately $27.5 million and $19.6 million in capital expenditures, respectively.

**10. Contract Commitments**

*Purchase Contract Commitments*

As of March 31, 2026, the Company had one outstanding contract, which was entered into during the third quarter of 2025, for the potential purchase of a hotel in Anchorage, Alaska for an expected fixed purchase price of approximately $65.5 million. The hotel is under development as a 160-guest-room AC Hotel and is currently planned to be completed and opened for business in the fourth quarter of 2027. As of March 31, 2026, a $2.0 million contract deposit (refundable if the seller does not meet its obligations under the contract) had been paid. If the closing occurs, the Company plans to utilize its available cash or borrowings, including borrowings under its unsecured credit facilities available at closing, to purchase the hotel under contract. Although the Company is working towards acquiring this hotel, there are a number of conditions to closing that have not yet been satisfied, and there can be no assurance that closing on this hotel will occur under the outstanding purchase contract. If the seller meets all of the conditions to closing, the Company is obligated to specifically perform under the purchase contract and acquire this hotel. As this hotel is under development, at this time, the seller has not met all of the conditions to closing.

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*Development Project*

During the third quarter of 2025, the Company entered into a fixed-price contract with a third party to develop a dual-branded property, consisting of an AC Hotel and a Residence Inn, on Company-owned land in Las Vegas, Nevada, adjacent to its existing SpringHill Suites. The Company expects to spend a total of approximately $143.7 million to develop the hotels, which are currently planned to be completed and opened for business in the second quarter of 2028. Upon completion, the AC Hotel and Residence Inn are expected to contain approximately 237 and 160 guest rooms, respectively. As of March 31, 2026, the Company has paid $1.6 million in refundable (if the contracted developer does not meet its obligation under the contract) deposits.

**11. Subsequent Events**

On April 15, 2026, the Company paid approximately $18.9 million, or $0.08 per common share, in distributions to shareholders of record as of March 31, 2026.

On April 15, 2026, the Company completed the sale of its 124-room Hampton located in Rochester, Minnesota, for a gross sales price of approximately $8.7 million.

On April 20, 2026, the Company declared a monthly cash distribution of $0.08 per common share. The distribution is payable on May 15, 2026, to shareholders of record as of April 30, 2026.

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**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations**

***Forward-Looking Statements***

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements are typically identified by use of statements that include phrases such as "may," "believe," "expect," "anticipate," "intend," "estimate," "project," "target," "goal," "plan," "should," "will," "predict," "potential," "outlook," "strategy," and similar expressions that convey the uncertainty of future events or outcomes. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Apple Hospitality REIT, Inc. and its wholly-owned subsidiaries (the "Company") to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.

Such factors include, but are not limited to, the ability of the Company 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 tariffs, 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; and 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 ("REIT"). 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 Quarterly Report 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. In addition, the Company's qualification as a REIT involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, as amended (the "Code"). Readers should carefully review the risk factors described in the Company's filings with the Securities and Exchange Commission ("SEC"), including but not limited to those discussed in the section titled "Risk Factors" in the 2025 Form 10-K. Any forward-looking statement that the Company makes speaks only as of the date of this Quarterly Report. The Company undertakes no obligation to publicly update or revise any forward-looking statements or cautionary factors, as a result of new information, future events, or otherwise, except as required by law.

The following discussion and analysis should be read in conjunction with the Company's Unaudited Consolidated Financial Statements and Notes thereto, appearing elsewhere in this Quarterly Report on Form 10-Q, as well as the information contained in the 2025 Form 10-K.

***Overview***

The Company is a Virginia corporation that has elected to be treated as a REIT for U.S. federal income tax purposes. The Company is self-advised and invests in income-producing real estate, primarily in the lodging sector, in the U.S. As of March 31, 2026, the Company owned 217 hotels with an aggregate of 29,583 guest rooms located in urban, high-end suburban and developing markets throughout 37 states and the District of Columbia, including one hotel with 124 guest rooms classified as held for sale, which was sold in April 2026. Substantially all of the Company's hotels operate under Marriott or Hilton brands. The hotels are operated and managed under separate management agreements with 15 hotel management companies, none of which are affiliated with the Company. The Company's common shares are listed on the NYSE under the ticker symbol "APLE."

***Recent Hotel Portfolio Activities***

The Company continually monitors market conditions and attempts to maximize shareholder value by investing in properties that it believes provide superior value over the long term. Consistent with this strategy and the Company's focus on investing in rooms-focused hotels, as of March 31, 2026, the Company had one outstanding contract, which was entered into during the third quarter of 2025, for the potential purchase of a hotel in Anchorage, Alaska for an expected fixed purchase price of approximately $65.5 million. The hotel is under development as a 160-guest-room AC Hotel and is currently planned to be completed and opened for business in the fourth quarter of 2027. As of March 31, 2026, a $2.0 million contract deposit (refundable if the seller does not meet its obligations under the contract) had been paid. If the closing occurs, the Company plans to utilize its available cash or borrowings, including borrowings under its unsecured credit facilities available at closing, to purchase the hotel under contract. Although the Company is working towards acquiring this hotel, there are a number of conditions to closing that have not yet been satisfied, and there can be no assurance that closing on this hotel will occur under the outstanding purchase contract. If the seller meets all of the

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conditions to closing, the Company is obligated to specifically perform under the purchase contract and acquire this hotel. As this hotel is under development, at this time, the seller has not met all of the conditions to closing.

During the third quarter of 2025, the Company entered into a fixed-price contract with a third party to develop a dual-branded property, consisting of an AC Hotel and a Residence Inn, on Company-owned land in Las Vegas, Nevada, adjacent to its existing SpringHill Suites. The Company expects to spend a total of approximately $143.7 million to develop the hotels, which are currently planned to be completed and opened for business in the second quarter of 2028. Upon completion, the AC Hotel and Residence Inn are expected to contain approximately 237 and 160 guest rooms, respectively.

For its existing portfolio, the Company monitors each property's profitability, market conditions and capital requirements and attempts to maximize shareholder value by disposing of properties when it believes that superior value can be provided from the sale of the property. As a result, during the three months ended March 31, 2026, the Company entered into a purchase and sale agreement with an unrelated party for the sale of one hotel for a gross sales price of $8.7 million. Since the buyer under the contract completed its due diligence and made a non-refundable deposit, as of March 31, 2026, the Company classified this hotel as assets held for sale on its consolidated balance sheet at its carrying value (which is less than the contract price, net of costs to sell). The Company completed the sale of the hotel in April 2026.

See Note 3 titled "Assets Held for Sale and Dispositions" and Note 10 titled "Contract Commitments" in the Company's Unaudited Consolidated Financial Statements and Notes thereto, appearing elsewhere in this Quarterly Report on Form 10-Q, for additional information concerning these transactions.

As of March 31, 2026, the Company's independent boutique hotel in New York, New York (the "New York Property") was included in the Company's hotel and guest room counts. On April 4, 2025, the Company recovered possession of this property and reinstated operations of the hotel's 209 guest rooms through a third-party manager engaged by the Company. From May 2023 through March 2025, the Company classified the property as a "non-hotel property" and excluded it from hotel and guest room counts, as it was leased to a third-party hotel operator. Following the third-party hotel operator's failure to make lease payments, the Company commenced legal proceedings in 2024 to remove the third-party hotel operator from possession of the property. In April 2025, the Company and the third-party hotel operator entered into an agreement to mutually release all claims, to terminate the lease and for the third-party hotel operator to voluntarily surrender possession of the property back to the Company.

***Hotel Operations***

As of March 31, 2026, the Company owned 217 hotels, including one hotel classified as held for sale, with a total of 29,583 guest rooms as compared to 219 hotels with a total of 29,558 guest rooms as of March 31, 2025. Results of operations are included only for the period of ownership for hotels acquired or disposed of during the current reporting period and the prior year. During the three months ended March 31, 2026, the Company did not acquire or dispose of any properties. During the three months ended March 31, 2025, the Company did not acquire any properties, but sold two properties, including one property sold on February 12, 2025 and one property sold on March 19, 2025. On April 4, 2025, the Company recovered possession from a third-party hotel operator and reinstated operations of its 209-guest-room New York Property through a third-party manager engaged by the Company.

*<u>Management Company Transitions</u>*

The Company continually evaluates the performance of each property and may transfer management responsibilities to a different third-party manager to improve operational efficiency and maximize asset value. In markets or regions where the Company owns multiple properties, it may consolidate hotels under specific third-party managers to leverage regional expertise, gain operating efficiencies, and enhance overall portfolio performance. During the three months ended March 31, 2026, the Company transitioned the remaining nine hotels managed by affiliates of Marriott, as of December 31, 2025, to separate management companies that are not affiliated with Marriott, Hilton or Hyatt. In 2025, the Company transitioned the management responsibilities for nine other hotels to different third-party management companies with which it already had existing management agreements for other properties, a portion of which involved transitions from hotels previously managed by affiliates of Marriott to management companies unaffiliated with Marriott, Hilton, or Hyatt.

*<u>Operating Results</u>*

In evaluating financial condition and operating performance, the most important indicators on which the Company focuses are revenue measurements, such as average occupancy, average daily rate ("ADR") and revenue per available room ("RevPAR"), and expenses, such as hotel operating expenses, general and administrative expenses and other expenses described below. RevPAR and operating results may be impacted by regional and local economies and local regulations as well as changes in lodging demand due to macroeconomic factors including inflationary pressures, higher energy prices or a recessionary environment.

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The following is a summary of the results from operations of the Company's hotels for their respective periods of ownership by the Company:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| **(in thousands, except statistical data)** | **2026** | **Percent<br>of<br>Revenue** | **2025** | **Percent<br>of<br>Revenue** | **Percent<br>Change** |
| Total revenue | $337741 | 100.0% | $327702 | 100.0% | 3.1% |
| Hotel operating expense | 206937 | 61.3% | 199870 | 61.0% | 3.5% |
| Property taxes, insurance and other expense | 22458 | 6.6% | 23361 | 7.1% | -3.9% |
| General and administrative expense | 10796 | 3.2% | 9228 | 2.8% | 17.0% |
| Depreciation and amortization expense | 49537 |  | 47941 |  | 3.3% |
| Gain on sale of real estate | - |  | 3557 |  | n/a |
| Interest and other expense, net | 20072 |  | 19397 |  | 3.5% |
| Income tax expense | 242 |  | 241 |  | 0.4% |
| Net income | 27699 |  | 31221 |  | -11.3% |
| Adjusted Hotel EBITDA <sup>(1)</sup> | 108479 |  | 105265 |  | 3.1% |
| Number of hotels owned at end of period | 217 |  | 219 |  | -0.9% |
| ADR | $157.19 |  | $156.24 |  | 0.6% |
| Occupancy | 72.8% |  | 71.1% |  | 2.4% |
| RevPAR | $114.43 |  | $111.04 |  | 3.1% |

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(1)See reconciliation of Adjusted Hotel EBITDA to net income in "Non-GAAP Financial Measures" below.

*<u>Comparable Hotels Operating Results</u>*

The following table reflects certain operating statistics for the Company's 216 hotels owned and held for use as of March 31, 2026 ("Comparable Hotels"). The Company defines metrics from Comparable Hotels as results generated by the 216 hotels owned and held for use as of the end of the reporting period. For the hotels acquired during the reporting periods shown, the Company has included, as applicable, results of those hotels for periods prior to the Company's ownership using information provided by the properties' prior owners at the time of acquisition and not adjusted by the Company. For dispositions and assets held for sale, results have been excluded for the Company's period of ownership.

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| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** | **Percent Change** |
| ADR | $157.35 | $157.26 | 0.1% |
| Occupancy | 72.8% | 71.3% | 2.1% |
| RevPAR | $114.61 | $112.14 | 2.2% |

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*<u>Same Store Operating Results</u>*

The following table reflects certain operating statistics for the 213 hotels owned and held for use by the Company as of January 1, 2025 and during the entirety of the reporting periods being compared, excluding the New York Property ("Same Store Hotels").

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| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** | **Percent Change** |
| ADR | $157.24 | $157.06 | 0.1% |
| Occupancy | 73.2% | 71.3% | 2.7% |
| RevPAR | $115.04 | $111.91 | 2.8% |

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As discussed above, hotel performance is impacted by many factors, including the economic conditions in the U.S. as well as each individual locality. The Company's Comparable Hotels and Same Store Hotels revenue and operating results increased modestly for the three months ended March 31, 2026, compared to the same period in 2025, reflecting improvement in demand beyond the impact of prior-year headwinds, including reduced government travel following the current administration's efforts to curtail government spending and broader macroeconomic uncertainty in the U.S. The Company expects RevPAR to improve seasonally over the remainder of the year. Prior expectations were for full-year 2026 RevPAR to be in line with 2025, consistent with broader industry

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chain-scale outlooks; however, based on performance through the first quarter, the Company currently expects full-year 2026 RevPAR to modestly exceed 2025 levels, assuming no material changes in the macroeconomic environment.

*<u>Revenues</u>* 

The Company's principal source of revenue is hotel revenue consisting of room, food and beverage, and other related revenue. For the three months ended March 31, 2026 and 2025, the Company had total revenue of $337.7 million and $327.7 million, respectively. For the three months ended March 31, 2026 and 2025, respectively, Comparable Hotels achieved combined average occupancy of 72.8% and 71.3%, ADR of $157.35 and $157.26, and RevPAR of $114.61 and $112.14. ADR is calculated as room revenue divided by the number of rooms sold, and RevPAR is calculated as occupancy multiplied by ADR.

Compared to the same period in 2025, during the three months ended March 31, 2026, the Company's Comparable Hotels ADR generally remained unchanged while occupancy increased by 2.1% resulting in an increase in Comparable Hotels RevPAR of 2.2%. Revenue increased for the three months ended March 31, 2026 compared to the same period in 2025, reflecting improved demand beyond the impact of prior-year headwinds, including reduced government travel and broader U.S. macroeconomic uncertainty in the first quarter of 2025 following the current administration's efforts to curtail government spending. Markets with significantly above-average growth in the first quarter of 2026, compared to the same period in 2025, for the Company included Anchorage, Chicago, Fort Lauderdale, Las Vegas, Madison, Miami, Oklahoma City and Seattle. For the remainder of 2026, the Company expects RevPAR to be similar for its Comparable Hotels as compared to 2025, which is consistent with broader expectations for applicable industry chain scale averages assuming the current macroeconomic environment continues. Future revenues could be negatively impacted by, among other things, historical seasonal trends, deterioration of consumer sentiment, a recessionary macroeconomic environment, inflationary pressures, a continuation of reduced government travel or continued geopolitical uncertainty.

*<u>Hotel Operating Expense</u>* 

Hotel operating expense consists of direct room operating expense, hotel administrative expense, sales and marketing expense, utilities expense, repair and maintenance expense, franchise fees and management fees. For the three months ended March 31, 2026 and 2025, hotel operating expense totaled $206.9 million and $199.9 million, respectively, or 61.3% and 61.0% of total revenue for the respective periods. The increase in hotel operating expense for the three months ended March 31, 2026, as compared to the same period in 2025, was primarily driven by higher occupancy levels, which resulted in increased variable operating expenses, including labor, utilities and administrative costs. While these costs naturally increase with improved operating performance, such expenses have been well controlled by the Company relative to the additional occupancy-driven activity. Additionally, ongoing inflationary pressures across the broader economy contributed to the increase in operational costs for the period. While payroll costs remain elevated due to a competitive labor market, wage growth has moderated, and management companies have continued to reduce their use of contract labor. For the remainder of 2026, the Company anticipates a similar operating expense environment. The Company continues to monitor its management companies' efforts to realize operational efficiencies and mitigate the impact of cost pressures resulting from inflation and a tight labor market. The Company will continue to support its management companies to implement adjustments to the hotel operating model in response to continued changes in the operating environment and guest preferences, including their efforts to maximize operational efficiency.

*<u>Property Taxes, Insurance and Other Expense</u>* 

Property taxes, insurance and other expense for the three months ended March 31, 2026 and 2025 totaled $22.5 million and $23.4 million, respectively, or 6.6% and 7.1% of total revenue for the respective periods. The decrease in property taxes, insurance and other expense for the three months ended March 31, 2026, as compared to the same period in 2025, was primarily due to decreases in property insurance premiums and successful appeals of real estate tax assessments from prior periods in certain jurisdictions. The Company will continue to proactively pursue tax assessment appeals in certain jurisdictions in an attempt to minimize tax increases, as warranted.

*<u>General and Administrative Expense</u>* 

General and administrative expense for the three months ended March 31, 2026 and 2025 was $10.8 million and $9.2 million, respectively, or 3.2% and 2.8% of total revenue for the respective periods. The principal components of general and administrative expense are payroll and related benefit costs, executive incentive compensation, legal fees, accounting fees and reporting expenses. The increase in general and administrative expense for the three months ended March 31, 2026, as compared to the same period in 2025, was primarily due to increased accruals for anticipated performance under the Company's executive incentive compensation plan.

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*<u>Depreciation and Amortization Expense</u>* 

Depreciation and amortization expense for the three months ended March 31, 2026 and 2025 was $49.5 million and $47.9 million, respectively. Depreciation and amortization expense primarily represents expense of the Company's hotel buildings and related improvements, and associated personal property (furniture, fixtures, and equipment) for the respective periods owned. For the three months ended March 31, 2026, depreciation and amortization expense slightly increased by approximately $1.6 million as compared to the same period in 2025, primarily due to the acquisitions of two hotels in the second and fourth quarters of 2025, which had higher purchase prices compared to the carrying values of the seven hotels disposed of in 2025, as well as renovations completed throughout 2025 and the first quarter of 2026.

*<u>Interest and Other Expense, net</u>* 

Interest and other expense, net, for the three months ended March 31, 2026 and 2025 was $20.1 million and $19.4 million, respectively. Interest and other expense, net, for the three months ended March 31, 2026 and 2025 is net of approximately $0.8 million, in each respective period, of interest capitalized associated with renovation projects.

Interest expense related to the Company's debt instruments for the three months ended March 31, 2026 increased slightly compared to the same period of 2025 as a result of higher average borrowings associated with variable-rate debt, partially offset by lower average interest rates on the Company's fixed and variable-rate debt and lower average borrowings associated with fixed-rate debt. The Company anticipates interest expense for the remainder of 2026 will be relatively similar to the interest expense for the same period of 2025 as a result of increased borrowings being offset by lower average interest rates. The proportion of variable-rate debt that is fixed by interest rate swaps was lower over the three months ended March 31, 2026 compared to the same period of 2025, as the Company had three interest rate swaps in effect on $150.0 million of variable-rate debt mature during 2025. However, this was partially offset as the Company entered into two new interest rate swaps in effect on $100.0 million of variable-rate debt during the third quarter of 2025, but at higher fixed rates than the swap agreements that expired. If the Company continues to replace expiring interest rate swaps in the current interest rate environment with new agreements, the Company anticipates those new agreements to be at higher rates than the expiring swap agreements.

***Non-GAAP Financial Measures***

The Company considers the following non-GAAP financial measures useful to investors as key supplemental measures of its operating performance: Funds from Operations ("FFO"), Modified Funds from Operations ("MFFO"), Earnings Before Interest, Income Taxes, Depreciation and Amortization ("EBITDA"), Earnings Before Interest, Income Taxes, Depreciation and Amortization for Real Estate ("EBITDAre"), Adjusted EBITDAre ("Adjusted EBITDAre") and Adjusted Hotel EBITDA. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income (loss), cash flow from operations or any other operating GAAP measure. FFO, MFFO, EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted Hotel EBITDA are not necessarily indicative of funds available to fund the Company's cash needs, including its ability to make cash distributions. Although FFO, MFFO, EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted Hotel EBITDA, as calculated by the Company, may not be comparable to FFO, MFFO, EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted Hotel EBITDA, as reported by other companies that do not define such terms exactly as the Company defines such terms, the Company believes these supplemental measures are useful to investors when comparing the Company's results between periods and with other REITs.

*<u>FFO and MFFO</u>*

The Company calculates and presents FFO in accordance with standards established by the National Association of Real Estate Investment Trusts ("Nareit"), which defines FFO as net income (loss) (computed in accordance with GAAP), excluding gains and losses from the sale of certain real estate assets (including gains and losses from change in control), extraordinary items as defined by GAAP, and the cumulative effect of changes in accounting principles, plus real estate related depreciation, amortization and impairments, and adjustments for unconsolidated affiliates. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most real estate industry investors consider FFO to be helpful in evaluating a real estate company's operations. The Company further believes that by excluding the effects of these items, FFO is useful to investors in comparing its operating performance between periods and between REITs that report FFO using the Nareit definition. FFO as presented by the Company is applicable only to its common shareholders, but does not represent an amount that accrues directly to common shareholders.

The Company calculates MFFO by further adjusting FFO for the exclusion of amortization of finance ground lease assets, amortization of favorable and unfavorable operating leases, net, non-cash straight-line operating ground lease expense and share-based compensation expense, as these expenses do not reflect the underlying performance of the related hotels. The Company presents MFFO when evaluating its performance because it believes that it provides further useful supplemental information to investors regarding its ongoing operating performance. In addition, MFFO is a component of a key compensation measure of operational performance within the 2026 Incentive Plan.

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The following table reconciles the Company's GAAP net income to FFO and MFFO for the three months ended March 31, 2026 and 2025 (in thousands):

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| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
|  | **2026** | **2025** |
| Net income | $27699 | $31221 |
| Depreciation of real estate owned | 48778 | 47181 |
| Gain on sale of real estate | - | (3557) |
| &nbsp;&nbsp;&nbsp;&nbsp;Funds from operations | 76477 | 74845 |
| Amortization of finance ground lease assets | 759 | 759 |
| Amortization of favorable and unfavorable operating leases, net | 102 | 102 |
| Non-cash straight-line operating ground lease expense | 31 | 33 |
| Share-based compensation expense <sup>(1)</sup> | 2914 | 3068 |
| &nbsp;&nbsp;&nbsp;&nbsp;Modified funds from operations | $80283 | $78807 |

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------

(1)Effective January 1, 2026, in calculating MFFO, the Company began to exclude share-based compensation expense, as it represents a non-cash transaction, consistent with the MFFO presentation of the majority of other public lodging REITs. Prior year results have been updated to conform with the current year presentation.

*<u>EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted Hotel EBITDA</u>*

EBITDA is a commonly used measure of performance in many industries and is defined as net income (loss) excluding interest, income taxes, depreciation and amortization. The Company believes EBITDA is useful to investors because it helps the Company and its investors evaluate the ongoing operating performance of the Company by removing the impact of its capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization). In addition, certain covenants included in the agreements governing the Company's indebtedness use EBITDA, as defined in the specific credit agreement, as a measure of financial compliance.

In addition to EBITDA, the Company also calculates and presents EBITDAre in accordance with standards established by Nareit, which defines EBITDAre as EBITDA, excluding gains and losses from the sale of certain real estate assets (including gains and losses from change in control), plus real estate related impairments, and adjustments to reflect the entity's share of EBITDAre of unconsolidated affiliates. The Company presents EBITDAre because it believes that it provides further useful information to investors in comparing its operating performance between periods and between REITs that report EBITDAre using the Nareit definition.

The Company also considers the exclusion of non-cash straight-line operating ground lease expense and share-based compensation expense from EBITDAre useful, as these expenses do not reflect the underlying performance of the related hotels (Adjusted EBITDAre).

The Company further excludes corporate expense, defined as actual corporate-level general and administrative expense, excluding share-based compensation expense, for the Company as well as Adjusted EBITDAre from the non-hotel property (the New York Property) from Adjusted EBITDAre (Adjusted Hotel EBITDA) to isolate property-level operational performance over which the Company's hotel operators have direct control. The Company believes Adjusted Hotel EBITDA provides useful supplemental information to investors regarding operating performance and it is used by management to measure the performance of the Company's hotels and effectiveness of the operators of the hotels. In addition, Adjusted EBITDAre and Adjusted Hotel EBITDA are both components of key compensation measures of operational performance within the 2026 Incentive Plan.

------

The following table reconciles the Company's GAAP net income to EBITDA, EBITDAre, Adjusted EBITDAre and Adjusted Hotel EBITDA for the three months ended March 31, 2026 and 2025 (in thousands):

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
|  | **2026** | **2025** |
| Net income | $27699 | $31221 |
| Depreciation and amortization | 49537 | 47941 |
| Amortization of favorable and unfavorable operating leases, net | 102 | 102 |
| Interest and other expense, net | 20072 | 19397 |
| Income tax expense | 242 | 241 |
| &nbsp;&nbsp;&nbsp;&nbsp;EBITDA | 97652 | 98902 |
| Gain on sale of real estate | - | (3557) |
| &nbsp;&nbsp;&nbsp;&nbsp;EBITDAre | 97652 | 95345 |
| Non-cash straight-line operating ground lease expense | 31 | 33 |
| Share-based compensation expense <sup>(1)</sup> | 2914 | 3068 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBITDAre | 100597 | 98446 |
| Corporate expense | 7882 | 6160 |
| Adjusted EBITDAre from non-hotel property <sup>(2)</sup> | - | 659 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted Hotel EBITDA | $108479 | $105265 |

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------

(1)Effective January 1, 2026, in calculating Adjusted EBITDAre, the Company began to exclude share-based compensation expense, as it represents a non-cash transaction and the add back to net income is consistent with the calculation of Adjusted EBITDA for the Company's financial covenant ratios under its credit facilities and consistent with the presentation of Adjusted EBITDA for the majority of other public lodging REITs. Prior year results have been updated to conform with the current year presentation.

(2)Non-hotel property consists of the results of the New York Property that was leased to a third-party hotel operator before possession was recovered and operations reinstated through a third-party manager on April 4, 2025. This property's Adjusted EBITDAre results are not included in Adjusted Hotel EBITDA beginning with the second half of 2023 through the first quarter of 2025.

***Hotels Owned*** 

As of March 31, 2026, the Company owned 217 hotels with an aggregate of 29,583 guest rooms located in 37 states and the District of Columbia, including one hotel with 124 guest rooms classified as held for sale which was sold in April 2026. The following tables summarize the number of hotels and guest rooms by brand and by state:

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| | | |
|:---|:---|:---|
| **Number of Hotels and Guest Rooms by Brand** | **Number of Hotels and Guest Rooms by Brand** | **Number of Hotels and Guest Rooms by Brand** |
|  | **Number of** | **Number of** |
| **Brand** | **Hotels** | **Guest Rooms** |
| Hilton Garden Inn | 39 | 5476 |
| Courtyard | 34 | 4892 |
| Hampton | 34 | 4642 |
| Residence Inn | 30 | 3695 |
| Homewood Suites | 27 | 3163 |
| Fairfield | 10 | 1213 |
| Home2 Suites | 10 | 1146 |
| SpringHill Suites | 8 | 1333 |
| TownePlace Suites | 8 | 834 |
| Embassy Suites | 4 | 770 |
| AC Hotels | 4 | 702 |
| Hyatt Place | 3 | 411 |
| Hyatt House | 2 | 264 |
| Marriott | 1 | 413 |
| Motto | 1 | 260 |
| Independent | 1 | 212 |
| Aloft Hotels | 1 | 157 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 217 | 29583 |

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------

---

| | | |
|:---|:---|:---|
| **Number of Hotels and Guest Rooms by State** | **Number of Hotels and Guest Rooms by State** | **Number of Hotels and Guest Rooms by State** |
|  | **Number of** | **Number of** |
| **State** | **Hotels** | **Guest Rooms** |
| Alabama | 13 | 1246 |
| Alaska | 2 | 304 |
| Arizona | 13 | 1776 |
| California | 24 | 3553 |
| Colorado | 4 | 567 |
| Florida | 23 | 2970 |
| Georgia | 5 | 585 |
| Idaho | 1 | 186 |
| Illinois | 7 | 1255 |
| Indiana | 3 | 349 |
| Iowa | 1 | 103 |
| Kansas | 2 | 230 |
| Kentucky | 1 | 156 |
| Louisiana | 3 | 422 |
| Maine | 3 | 514 |
| Maryland | 2 | 233 |
| Massachusetts | 3 | 330 |
| Michigan | 1 | 148 |
| Minnesota | 3 | 405 |
| Mississippi | 2 | 168 |
| Missouri | 4 | 544 |
| Nebraska | 4 | 621 |
| Nevada | 1 | 300 |
| New Jersey | 5 | 629 |
| New York | 4 | 558 |
| North Carolina | 7 | 799 |
| Ohio | 3 | 406 |
| Oklahoma | 4 | 545 |
| Oregon | 1 | 243 |
| Pennsylvania | 4 | 525 |
| South Carolina | 5 | 590 |
| Tennessee | 10 | 1424 |
| Texas | 25 | 3005 |
| Utah | 6 | 919 |
| Virginia | 11 | 1667 |
| Washington | 4 | 636 |
| Wisconsin | 2 | 438 |
| Washington, D.C. | 1 | 234 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 217 | 29583 |

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The following table summarizes the location, brand, manager, date acquired or completed and number of guest rooms for each of the 217 hotels that the Company owned as of March 31, 2026. As noted below, as of March 31, 2026, 14 of the Company's properties are subject to ground leases and 10 of its hotels are encumbered by mortgage debt.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **City** | **State** | **Brand** | **Manager** | **Date<br>Acquired or<br>Completed** | **Guest Rooms** |
| Anchorage | AK | Embassy Suites | InnVentures | 4/30/2010 | 169 |
| Anchorage | AK | Home2 Suites | InnVentures | 12/1/2017 | 135 |
| Auburn | AL | Hilton Garden Inn | LBA | 3/1/2014 | 101 |
| Birmingham | AL | Courtyard | LBA | 3/1/2014 | 84 |
| Birmingham | AL | Hilton Garden Inn | LBA | 9/12/2017 | 104 |
| Birmingham | AL | Home2 Suites | LBA | 9/12/2017 | 106 |
| Birmingham | AL | Homewood Suites | McKibbon | 3/1/2014 | 95 |
| Dothan | AL | Hilton Garden Inn | LBA | 6/1/2009 | 104 |
| Dothan | AL | Residence Inn | LBA | 3/1/2014 | 84 |
| Huntsville | AL | Hampton | LBA | 9/1/2016 | 98 |
| Huntsville | AL | Hilton Garden Inn | LBA | 3/1/2014 | 101 |
| Huntsville | AL | Home2 Suites | LBA | 9/1/2016 | 77 |
| Huntsville | AL | Homewood Suites | LBA | 3/1/2014 | 107 |
| Mobile | AL | Hampton | McKibbon | 9/1/2016 | 101<br><sup>(1)</sup> |
| Prattville | AL | Courtyard | LBA | 3/1/2014 | 84 |
| Chandler | AZ | Courtyard | North Central | 11/2/2010 | 150 |
| Chandler | AZ | Fairfield | North Central | 11/2/2010 | 110 |
| Phoenix | AZ | Courtyard | North Central | 11/2/2010 | 164 |
| Phoenix | AZ | Hampton | North Central | 9/1/2016 | 125<br><sup>(1)</sup> |
| Phoenix | AZ | Hampton | North Central | 5/2/2018 | 210 |
| Phoenix | AZ | Homewood Suites | North Central | 9/1/2016 | 134<br><sup>(1)</sup> |
| Phoenix | AZ | Residence Inn | North Central | 11/2/2010 | 129 |
| Scottsdale | AZ | Hilton Garden Inn | North Central | 9/1/2016 | 122 |
| Tempe | AZ | Hyatt House | Crestline | 8/13/2020 | 105<br><sup>(1)</sup> |
| Tempe | AZ | Hyatt Place | Crestline | 8/13/2020 | 154<br><sup>(1)</sup> |
| Tucson | AZ | Hilton Garden Inn | Western | 7/31/2008 | 125 |
| Tucson | AZ | Residence Inn | Western | 3/1/2014 | 124 |
| Tucson | AZ | TownePlace Suites | Western | 10/6/2011 | 124 |
| Agoura Hills | CA | Homewood Suites | Dimension | 3/1/2014 | 125 |
| Burbank | CA | Courtyard | Huntington | 8/11/2015 | 190<br><sup>(2)</sup> |
| Burbank | CA | Residence Inn | Huntington | 3/1/2014 | 166 |
| Burbank | CA | SpringHill Suites | Huntington | 7/13/2015 | 170<br><sup>(2)</sup> |
| Cypress | CA | Courtyard | Dimension | 3/1/2014 | 180 |
| Cypress | CA | Hampton | Dimension | 6/29/2015 | 110 |
| Oceanside | CA | Courtyard | Huntington | 9/1/2016 | 142 |
| Oceanside | CA | Residence Inn | Huntington | 3/1/2014 | 125 |
| Rancho Bernardo/San Diego | CA | Courtyard | InnVentures | 3/1/2014 | 210 |
| Sacramento | CA | Hilton Garden Inn | Dimension | 3/1/2014 | 153 |
| San Bernardino | CA | Residence Inn | InnVentures | 2/16/2011 | 95 |
| San Diego | CA | Courtyard | Huntington | 9/1/2015 | 245<br><sup>(2)</sup> |
| San Diego | CA | Hampton | Dimension | 3/1/2014 | 177<br><sup>(2)</sup> |
| San Diego | CA | Hilton Garden Inn | InnVentures | 3/1/2014 | 200 |
| San Diego | CA | Residence Inn | Dimension | 3/1/2014 | 122 |
| San Jose | CA | Homewood Suites | Dimension | 3/1/2014 | 140<br><sup>(2)</sup> |
| San Juan Capistrano | CA | Residence Inn | Dimension | 9/1/2016 | 130<br><sup>(1)</sup> |
| Santa Ana | CA | Courtyard | Dimension | 5/23/2011 | 155<br><sup>(2)</sup> |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **City** | **State** | **Brand** | **Manager** | **Date<br>Acquired or<br>Completed** | **Guest Rooms** |
| Santa Clarita | CA | Courtyard | Dimension | 9/24/2008 | 140 |
| Santa Clarita | CA | Fairfield | Dimension | 10/29/2008 | 66 |
| Santa Clarita | CA | Hampton | Dimension | 10/29/2008 | 128 |
| Santa Clarita | CA | Residence Inn | Dimension | 10/29/2008 | 90 |
| Tustin | CA | Fairfield | Huntington | 9/1/2016 | 145 |
| Tustin | CA | Residence Inn | Huntington | 9/1/2016 | 149 |
| Colorado Springs | CO | Hampton | Chartwell | 9/1/2016 | 101 |
| Denver | CO | Hilton Garden Inn | InnVentures | 9/1/2016 | 221 |
| Highlands Ranch | CO | Hilton Garden Inn | Dimension | 3/1/2014 | 128 |
| Highlands Ranch | CO | Residence Inn | Dimension | 3/1/2014 | 117 |
| Boca Raton | FL | Hilton Garden Inn | Dimension | 9/1/2016 | 149 |
| Cape Canaveral | FL | Hampton | LBA | 4/30/2020 | 116 |
| Cape Canaveral | FL | Homewood Suites | LBA | 9/1/2016 | 153 |
| Cape Canaveral | FL | Home2 Suites | LBA | 4/30/2020 | 108 |
| Fort Lauderdale | FL | Hampton | Dimension | 6/23/2015 | 156 |
| Fort Lauderdale | FL | Residence Inn | LBA | 9/1/2016 | 156 |
| Gainesville | FL | Hilton Garden Inn | McKibbon | 9/1/2016 | 104 |
| Gainesville | FL | Homewood Suites | McKibbon | 9/1/2016 | 103 |
| Jacksonville | FL | Homewood Suites | McKibbon | 3/1/2014 | 119 |
| Jacksonville | FL | Hyatt Place | Crestline | 12/7/2018 | 127 |
| Miami | FL | Courtyard | Dimension | 3/1/2014 | 118<br><sup>(1)</sup> |
| Miami | FL | Hampton | HHM | 4/9/2010 | 121 |
| Miami | FL | Homewood Suites | Dimension | 3/1/2014 | 162 |
| Orlando | FL | Fairfield | Crestline | 7/1/2009 | 200 |
| Orlando | FL | Home2 Suites | LBA | 3/19/2019 | 128 |
| Orlando | FL | SpringHill Suites | Crestline | 7/1/2009 | 200 |
| Panama City | FL | Hampton | LBA | 3/12/2009 | 95 |
| Panama City | FL | TownePlace Suites | LBA | 1/19/2010 | 103 |
| Pensacola | FL | TownePlace Suites | McKibbon | 9/1/2016 | 97 |
| Tallahassee | FL | Fairfield | LBA | 9/1/2016 | 97 |
| Tallahassee | FL | Hilton Garden Inn | LBA | 3/1/2014 | 85<br><sup>(1)</sup> |
| Tampa | FL | Embassy Suites | HHM | 11/2/2010 | 147 |
| Tampa | FL | Homewood Suites | HHM | 6/10/2025 | 126 |
| Atlanta/Downtown | GA | Hampton | McKibbon | 2/5/2018 | 119 |
| Atlanta/Perimeter Dunwoody | GA | Hampton | LBA | 6/28/2018 | 132 |
| Atlanta | GA | Home2 Suites | McKibbon | 7/1/2016 | 128 |
| Macon | GA | Hilton Garden Inn | LBA | 3/1/2014 | 101<br><sup>(1)</sup> |
| Savannah | GA | Hilton Garden Inn | Newport | 3/1/2014 | 105<br><sup>(1)</sup> |
| Davenport | IA | Hampton | Chartwell | 9/1/2016 | 103 |
| Boise | ID | Hampton | Raymond | 4/30/2010 | 186<br><sup>(2)</sup> |
| Des Plaines | IL | Hilton Garden Inn | Raymond | 9/1/2016 | 253 |
| Hoffman Estates | IL | Hilton Garden Inn | HHM | 9/1/2016 | 184 |
| Mettawa | IL | Hilton Garden Inn | HHM | 11/2/2010 | 170 |
| Mettawa | IL | Residence Inn | HHM | 11/2/2010 | 130 |
| Rosemont | IL | Hampton | Raymond | 9/1/2016 | 158 |
| Skokie | IL | Hampton | Raymond | 9/1/2016 | 225 |
| Warrenville | IL | Hilton Garden Inn | HHM | 11/2/2010 | 135 |
| Merrillville | IN | Hilton Garden Inn | HHM | 9/1/2016 | 124 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **City** | **State** | **Brand** | **Manager** | **Date<br>Acquired or<br>Completed** | **Guest Rooms** |
| Mishawaka | IN | Residence Inn | HHM | 11/2/2010 | 106 |
| South Bend | IN | Fairfield | HHM | 9/1/2016 | 119 |
| Overland Park | KS | Fairfield | Raymond | 3/1/2014 | 110 |
| Overland Park | KS | Residence Inn | Raymond | 3/1/2014 | 120 |
| Louisville | KY | AC Hotels | Concord | 10/25/2022 | 156 |
| Lafayette | LA | Hilton Garden Inn | LBA | 7/30/2010 | 153<br><sup>(1)</sup> |
| Lafayette | LA | SpringHill Suites | LBA | 6/23/2011 | 103 |
| New Orleans | LA | Homewood Suites | Dimension | 3/1/2014 | 166 |
| Marlborough | MA | Residence Inn | Crestline | 3/1/2014 | 112 |
| Westford | MA | Hampton | Crestline | 3/1/2014 | 110 |
| Westford | MA | Residence Inn | Crestline | 3/1/2014 | 108 |
| Annapolis | MD | Hilton Garden Inn | Crestline | 3/1/2014 | 126 |
| Silver Spring | MD | Hilton Garden Inn | Crestline | 7/30/2010 | 107 |
| Portland | ME | AC Hotels | Crestline | 8/20/2021 | 178 |
| Portland | ME | Aloft Hotels | Crestline | 9/10/2021 | 157 |
| Portland | ME | Residence Inn | Crestline | 10/13/2017 | 179<br><sup>(2)</sup> |
| Novi | MI | Hilton Garden Inn | HHM | 11/2/2010 | 148 |
| Maple Grove | MN | Hilton Garden Inn | North Central | 9/1/2016 | 121 |
| Rochester | MN | Hampton | Raymond | 8/3/2009 | 124<br><sup>(3)</sup> |
| St. Paul | MN | Hampton | Raymond | 3/4/2019 | 160 |
| Kansas City | MO | Hampton | Raymond | 8/31/2010 | 122 |
| Kansas City | MO | Residence Inn | Raymond | 3/1/2014 | 106 |
| St. Louis | MO | Hampton | Raymond | 8/31/2010 | 190 |
| St. Louis | MO | Hampton | Raymond | 4/30/2010 | 126 |
| Hattiesburg | MS | Courtyard | LBA | 3/1/2014 | 84 |
| Hattiesburg | MS | Residence Inn | LBA | 12/11/2008 | 84 |
| Carolina Beach | NC | Courtyard | Crestline | 3/1/2014 | 144 |
| Charlotte | NC | Fairfield | Newport | 9/1/2016 | 94 |
| Durham | NC | Homewood Suites | McKibbon | 12/4/2008 | 122 |
| Fayetteville | NC | Home2 Suites | LBA | 2/3/2011 | 118 |
| Jacksonville | NC | Home2 Suites | LBA | 9/1/2016 | 105 |
| Wilmington | NC | Fairfield | Crestline | 3/1/2014 | 122 |
| Winston-Salem | NC | Hampton | McKibbon | 9/1/2016 | 94 |
| Omaha | NE | Courtyard | HHM | 3/1/2014 | 181 |
| Omaha | NE | Hampton | HHM | 9/1/2016 | 139 |
| Omaha | NE | Hilton Garden Inn | HHM | 9/1/2016 | 178 |
| Omaha | NE | Homewood Suites | HHM | 9/1/2016 | 123 |
| Cranford | NJ | Homewood Suites | Dimension | 3/1/2014 | 108 |
| Mahwah | NJ | Homewood Suites | Dimension | 3/1/2014 | 110 |
| Mount Laurel | NJ | Homewood Suites | Newport | 1/11/2011 | 118 |
| Somerset | NJ | Courtyard | Newport | 3/1/2014 | 162<br><sup>(1)</sup> |
| West Orange | NJ | Courtyard | Newport | 1/11/2011 | 131 |
| Las Vegas | NV | SpringHill Suites | Highgate | 12/27/2023 | 300 |
| Islip/Ronkonkoma | NY | Hilton Garden Inn | Crestline | 3/1/2014 | 166 |
| New York | NY | Independent | Highgate | 3/1/2014 | 212<br><sup>(1)</sup> |
| Syracuse | NY | Courtyard | Crestline | 10/16/2015 | 102 |
| Syracuse | NY | Residence Inn | Crestline | 10/16/2015 | 78 |
| Cleveland | OH | Courtyard | Concord | 6/30/2023 | 154 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **City** | **State** | **Brand** | **Manager** | **Date<br>Acquired or<br>Completed** | **Guest Rooms** |
| Mason | OH | Hilton Garden Inn | Raymond | 9/1/2016 | 110 |
| Twinsburg | OH | Hilton Garden Inn | Concord | 10/7/2008 | 142 |
| Oklahoma City | OK | Hampton | Raymond | 5/28/2010 | 200 |
| Oklahoma City | OK | Hilton Garden Inn | Raymond | 9/1/2016 | 155 |
| Oklahoma City | OK | Homewood Suites | Raymond | 9/1/2016 | 100 |
| Oklahoma City (West) | OK | Homewood Suites | Chartwell | 9/1/2016 | 90 |
| Portland | OR | Hampton | Raymond | 11/17/2021 | 243 |
| Collegeville/Philadelphia | PA | Courtyard | Newport | 11/15/2010 | 132 |
| Malvern/Philadelphia | PA | Courtyard | Newport | 11/30/2010 | 127 |
| Pittsburgh | PA | AC Hotels | Concord | 10/25/2022 | 134 |
| Pittsburgh | PA | Hampton | Newport | 12/31/2008 | 132 |
| Charleston | SC | Home2 Suites | LBA | 9/1/2016 | 122 |
| Columbia | SC | Hilton Garden Inn | Newport | 3/1/2014 | 143 |
| Columbia | SC | TownePlace Suites | Newport | 9/1/2016 | 91 |
| Greenville | SC | Hyatt Place | Crestline | 9/1/2021 | 130 |
| Hilton Head | SC | Hilton Garden Inn | McKibbon | 3/1/2014 | 104 |
| Franklin | TN | Courtyard | Chartwell | 9/1/2016 | 126 |
| Franklin | TN | Residence Inn | Chartwell | 9/1/2016 | 124 |
| Knoxville | TN | Homewood Suites | McKibbon | 9/1/2016 | 103 |
| Knoxville | TN | SpringHill Suites | McKibbon | 9/1/2016 | 103 |
| Memphis | TN | Hampton | Crestline | 2/5/2018 | 144 |
| Memphis | TN | Hilton Garden Inn | Crestline | 10/28/2021 | 150 |
| Nashville | TN | Motto | Chartwell | 12/19/2025 | 260 |
| Nashville | TN | Hilton Garden Inn | Dimension | 9/30/2010 | 194 |
| Nashville | TN | Home2 Suites | Dimension | 5/31/2012 | 119 |
| Nashville | TN | TownePlace Suites | Chartwell | 9/1/2016 | 101 |
| Addison | TX | SpringHill Suites | Western | 3/1/2014 | 159 |
| Arlington | TX | Hampton | Western | 12/1/2010 | 98 |
| Austin | TX | Courtyard | Dimension | 11/2/2010 | 145 |
| Austin | TX | Fairfield | Dimension | 11/2/2010 | 150 |
| Austin | TX | Hampton | Dimension | 4/14/2009 | 124 |
| Austin | TX | Homewood Suites | Dimension | 4/14/2009 | 97 |
| Austin/Round Rock | TX | Hampton | Dimension | 3/6/2009 | 94 |
| Austin/Round Rock | TX | Homewood Suites | Dimension | 9/1/2016 | 115 |
| Dallas | TX | Homewood Suites | Western | 9/1/2016 | 130 |
| Denton | TX | Homewood Suites | Chartwell | 9/1/2016 | 107 |
| El Paso | TX | Homewood Suites | Western | 3/1/2014 | 114 |
| Fort Worth | TX | Courtyard | LBA | 2/2/2017 | 124 |
| Fort Worth | TX | Hilton Garden Inn | Raymond | 11/17/2021 | 157 |
| Fort Worth | TX | Homewood Suites | Raymond | 11/17/2021 | 112 |
| Fort Worth | TX | TownePlace Suites | Western | 7/19/2010 | 140 |
| Frisco | TX | Hilton Garden Inn | Western | 12/31/2008 | 102 |
| Grapevine | TX | Hilton Garden Inn | Western | 9/24/2010 | 110 |
| Houston | TX | Courtyard | LBA | 9/1/2016 | 124 |
| Houston | TX | Residence Inn | Western | 3/1/2014 | 129 |
| Houston | TX | Residence Inn | Western | 9/1/2016 | 120 |
| Lewisville | TX | Hilton Garden Inn | Western | 10/16/2008 | 165 |
| San Antonio | TX | TownePlace Suites | Western | 3/1/2014 | 106 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **City** | **State** | **Brand** | **Manager** | **Date<br>Acquired or<br>Completed** | **Guest Rooms** |
| Shenandoah | TX | Courtyard | LBA | 9/1/2016 | 124 |
| Stafford | TX | Homewood Suites | Western | 3/1/2014 | 78 |
| Texarkana | TX | Hampton | Western | 1/31/2011 | 81 |
| Provo | UT | Residence Inn | North Central | 3/1/2014 | 114 |
| Salt Lake City | UT | Courtyard | North Central | 10/11/2023 | 175 |
| Salt Lake City | UT | Hyatt House | North Central | 10/11/2023 | 159 |
| Salt Lake City | UT | Residence Inn | North Central | 10/20/2017 | 136 |
| Salt Lake City | UT | SpringHill Suites | North Central | 11/2/2010 | 143 |
| South Jordan | UT | Embassy Suites | HHM | 11/21/2023 | 192 |
| Alexandria | VA | Courtyard | HHM | 3/1/2014 | 178 |
| Alexandria | VA | SpringHill Suites | HHM | 3/28/2011 | 155 |
| Charlottesville | VA | Courtyard | Crestline | 3/1/2014 | 139 |
| Manassas | VA | Residence Inn | Crestline | 2/16/2011 | 107 |
| Richmond | VA | Courtyard | White Lodging | 12/8/2014 | 135<br><sup>(2)</sup> |
| Richmond | VA | Marriott | White Lodging | 3/1/2014 | 413<br><sup>(1)</sup> |
| Richmond | VA | Residence Inn | White Lodging | 12/8/2014 | 75<br><sup>(2)</sup> |
| Suffolk | VA | Courtyard | Crestline | 3/1/2014 | 92 |
| Suffolk | VA | TownePlace Suites | Crestline | 3/1/2014 | 72 |
| Virginia Beach | VA | Courtyard | Crestline | 3/1/2014 | 141 |
| Virginia Beach | VA | Courtyard | Crestline | 3/1/2014 | 160 |
| Kirkland | WA | Courtyard | InnVentures | 3/1/2014 | 150 |
| Renton | WA | Residence Inn | InnVentures | 10/18/2023 | 146 |
| Seattle | WA | Residence Inn | InnVentures | 3/1/2014 | 234 |
| Tukwila | WA | Homewood Suites | Dimension | 3/1/2014 | 106 |
| Madison | WI | Hilton Garden Inn | Raymond | 2/18/2021 | 176 |
| Madison | WI | Embassy Suites | Raymond | 6/20/2024 | 262 |
| Washington, D.C. | - | AC Hotels | HHM | 3/25/2024 | 234 |
| Total |  |  |  |  | 29583 |

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(1)Property is subject to a ground lease.

(2)Hotel is encumbered by a mortgage.

(3)Hotel is classified as held for sale as of March 31, 2026, and was sold in April 2026.

***Related Parties*** 

The Company has engaged in, and is expected to continue to engage in, transactions with related parties. These transactions cannot be construed as being at arm's length, and the results of the Company's operations may have been different if these transactions were conducted with non-related parties. See Note 6 titled "Related Parties" in the Company's Unaudited Consolidated Financial Statements and Notes thereto, appearing elsewhere in this Quarterly Report on Form 10-Q, for additional information concerning the Company's related party transactions.

***Liquidity and Capital Resources*** 

*<u>Capital Resources</u>* 

The Company's principal short-term sources of liquidity are the operating cash flows generated from the Company's properties and availability under its Revolving Credit Facility. Over the long term, the Company may receive proceeds from strategic additional secured and unsecured debt financing, dispositions of its hotel properties and offerings of the Company's common shares, including pursuant to the ATM Program. Macroeconomic pressures, including inflation, increases in interest rates and general market uncertainty, could impact the Company's ability to raise debt or equity capital to fund long-term liquidity requirements in a cost-effective manner.

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As of March 31, 2026, the Company had $1.6 billion of total outstanding debt consisting of $182.7 million of mortgage debt and $1.4 billion outstanding under its unsecured credit facilities, excluding unamortized debt issuance costs. As of March 31, 2026, the Company had available corporate cash on hand of approximately $7.8 million, and unused borrowing capacity under its Revolving Credit Facility of approximately $558.8 million after taking into account a $2.1 million letter of credit.

The credit agreements governing the unsecured credit facilities contain customary affirmative and negative covenants and events of default. The covenants include, among others, a minimum tangible net worth, maximum debt limits, minimum interest and fixed charge coverage ratios, and restrictions on certain investments. The Company was in compliance with the applicable covenants as of March 31, 2026.

See Note 4, titled "Debt" in the Company's Unaudited Consolidated Financial Statements and Notes thereto, appearing elsewhere in this Quarterly Report on Form 10-Q, for details regarding the Company's debt agreements as of March 31, 2026.

The Company has a universal shelf registration statement on Form S-3 (No. 333-285184) that was automatically effective upon filing on February 25, 2025. The Company may offer an indeterminate number or amount, as the case may be, of (1) common shares, no par value per share; (2) preferred shares, no par value per share; (3) depository shares representing the Company's preferred shares; (4) warrants exercisable for the Company's common shares, preferred shares or depository shares representing preferred shares; (5) rights to purchase common shares; and (6) unsecured senior or subordinate debt securities, all of which may be issued from time to time on a delayed or continuous basis pursuant to Rule 415 under the Securities Act.

On February 23, 2024, the Company entered into an equity distribution agreement pursuant to which the Company may sell, from time to time, up to an aggregate of $500 million of its common shares under the ATM Program. No common shares were sold under the Company's ATM Program during the three months ended March 31, 2026 or during the year ended December 31, 2025. As of March 31, 2026, $500 million remained available for issuance under the ATM Program. The Company plans to use future net proceeds from the sale of shares under the ATM Program, or a similar successor program, for general corporate purposes, which may include, among other things, acquisitions of additional properties, the repayment of outstanding indebtedness, capital expenditures, improvement of properties in its portfolio and working capital. The Company may also use the future net proceeds to acquire another REIT or other company that invests in income-producing properties. Future offerings will depend on a variety of factors to be determined by the Company, including market conditions, the trading price of the Company's common shares and opportunities for uses of any proceeds.

*<u>Capital Uses</u>*

The Company anticipates that cash flow from operations, availability under its Revolving Credit Facility, additional borrowings, and proceeds from hotel dispositions and equity offerings will be adequate to meet its anticipated liquidity requirements, including required distributions to shareholders, share repurchases, capital improvements, debt service, hotel acquisitions, lease commitments, and cash management activities.

*Distributions*

The Company generally must distribute annually at least 90% of its REIT taxable income, subject to certain adjustments and excluding any net capital gain, in order to maintain its REIT status. On March 19, 2026, the Company declared a monthly cash distribution of $0.08 per common share, paid on April 15, 2026, to shareholders of record as of March 31, 2026. For the three months ended March 31, 2026, the Company paid distributions of $0.24 per common share for a total of $56.6 million. Subsequent to quarter end, on April 20, 2026, the Company declared a monthly cash distribution of $0.08 per common share, payable on May 15, 2026, to shareholders of record as of April 30, 2026.

The Company's current annual distribution rate, payable monthly, is $0.96 per common share. As it has done historically, due to seasonality, the Company may use its Revolving Credit Facility to maintain the consistency of the monthly distribution rate, taking into consideration any acquisitions, dispositions, capital improvements and economic cycles. While management currently expects monthly cash distributions to continue at $0.08 per common share, any distribution will be subject to approval of the Company's Board of Directors, and there can be no assurance of the classification, timing or duration of distributions at any particular distribution rate. The Board of Directors monitors the Company's distribution rate relative to the performance of its hotels on an ongoing basis and may make adjustments to the distribution rate as determined to be prudent in relation to other cash requirements of the Company or to the extent required to maintain the Company's REIT status. If cash flows from operations and the Revolving Credit Facility are not adequate to meet liquidity requirements, the Company may utilize additional financing sources to make distributions. Although the Company has relatively low levels of debt, there can be no assurance it will be successful with this strategy, and it may need to reduce its distributions to minimum levels required to maintain its qualification as a REIT. If the Company were unable to extend its maturing debt in future periods or if it were to default on its debt, it may be unable to make distributions.

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*Share Repurchases*

In May 2025, the Company's Board of Directors approved a one-year extension of its existing Share Repurchase Program, authorizing share repurchases up to an aggregate of $262.6 million. The Share Repurchase Program may be suspended or terminated at any time by the Company and will end in July 2026 if not terminated or extended earlier. The Company previously entered into, and expects to continue to enter into, written trading plans as part of the Share Repurchase Program that provide for share repurchases in open market transactions that are intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company did not repurchase any common shares during the three months ended March 31, 2026. During the three months ended March 31, 2025, the Company purchased, under its Share Repurchase Program, approximately 1.9 million of its common shares at a weighted-average market purchase price of approximately $13.61 per common share for an aggregate purchase price, including commissions, of approximately $26.3 million. Purchases under the Share Repurchase Program have been funded, and the Company intends to fund future share repurchases, with cash on hand, proceeds from dispositions or availability under its unsecured credit facilities, subject to applicable restrictions under the Company's unsecured credit facilities (if any). The timing of share repurchases and the number of common shares to be purchased under the Share Repurchase Program will also depend upon prevailing market conditions, regulatory requirements and other factors. As of March 31, 2026, approximately $242.5 million remained available for purchase under the Share Repurchase Program.

*Capital Improvements*

Management routinely monitors the condition and operations of its hotels and plans renovations and other improvements as it deems prudent. The Company is committed to maintaining and enhancing each property's competitive position in its market. The Company has invested in and plans to continue to reinvest in its hotels. Under certain loan agreements, the Company is required to place in escrow funds for the repair, replacement and refurbishment of furniture, fixtures, and equipment at the applicable hotels, based on a percentage of the hotel's gross revenues, provided that such amount may be used for the Company's capital expenditures with respect to those hotels. As of March 31, 2026, the Company held approximately $8.8 million in reserves related to these properties. During the three months ended March 31, 2026, the Company invested approximately $27.5 million in capital expenditures. The Company anticipates spending approximately $80 million to $90 million during 2026, which includes various comprehensive renovation projects for approximately 21 properties, however, inflationary pressures, supply chain shortages or tariffs, among other issues, may result in increased costs and delays for anticipated projects.

During the third quarter of 2025, the Company entered into a fixed-price contract to develop a dual-branded property which will include an AC Hotel and a Residence Inn in Las Vegas, Nevada on land the Company owns that is adjacent to its SpringHill Suites. The Company expects to spend a total of approximately $143.7 million to develop the hotels, which are currently planned to be completed and opened for business in the second quarter of 2028.

*Upcoming Debt Maturities and Debt Service Payments*

As of March 31, 2026, the Company had approximately $359.7 million of principal and interest payments due on its debt over the next 12 months. Included in this total is a $19.5 million mortgage that matures in the second quarter of 2026, a $51.0 million mortgage covering three properties that matures in the fourth quarter of 2026, an $89.1 million Revolving Credit Facility balance at March 31, 2026, and a $130.0 million unsecured term loan, both of which mature in the third quarter of 2026. The Company plans to pay outstanding amounts and service payments due upon the upcoming debt maturity dates using one or a combination of any of the following: funds from operations, borrowings under its Revolving Credit Facility, proceeds from new financing, available credit extensions under its unsecured credit facilities or by refinancing the maturing debt. The Company may also pursue amendments with its lenders to extend the maturity date of any expiring loans. Both the $130 million term loan facility and the Revolving Credit Facility mature on July 25, 2026, but they can be extended up to one year, subject to certain conditions including covenant compliance and payment of additional fees. The Company presently has the ability to exercise both of these extensions; however, it plans to pursue refinancing of the maturing debt.

Interest expense related to the Company's unsecured credit facilities over the next 12 months is expected to be similar to the previous 12 months, with similar borrowings and slightly lower average interest rates. The average proportion of variable-rate debt that is fixed by interest rate swaps is expected to be lower over the next 12 months compared to the three months ended March 31, 2026. The Company has two interest rate swaps in effect on $200.0 million of variable-rate debt that will mature in 2026. If the Company replaces expiring interest rate swaps in the current interest rate environment with new agreements, the Company anticipates those new agreements to generally be at higher rates than the expiring swap agreements. See Note 4 titled "Debt" and Note 5 titled "Fair Value of Financial Instruments" in the Company's Unaudited Consolidated Financial Statements and Notes thereto, appearing

------

elsewhere in this Quarterly Report on Form 10-Q for more detail regarding future maturities of the Company's debt instruments and interest rate swap agreements as of March 31, 2026.

*Purchase Contract Commitments*

As of March 31, 2026, the Company had one outstanding contract, which was entered into during the third quarter of 2025, for the potential purchase of a hotel in Anchorage, Alaska for an expected fixed purchase price of approximately $65.5 million. The hotel is under development as a 160-guest-room AC Hotel and is currently planned to be completed and opened for business in the fourth quarter of 2027. As of March 31, 2026, a $2.0 million contract deposit (refundable if the seller does not meet its obligations under the contract) had been paid. If the closing occurs, the Company plans to utilize its available cash or borrowings, including borrowings under its unsecured credit facilities available at closing, to purchase the hotel under contract. Although the Company is working towards acquiring this hotel, there are a number of conditions to closing that have not yet been satisfied, and there can be no assurance that closing on this hotel will occur under the outstanding purchase contract. If the seller meets all of the conditions to closing, the Company is obligated to specifically perform under the purchase contract and acquire this hotel. As this hotel is under development, at this time, the seller has not met all of the conditions to closing.

As mentioned in the "Capital Improvements" section above, during the third quarter of 2025, the Company entered into a fixed-price contract with a third party to develop a dual-branded property, consisting of an AC Hotel and a Residence Inn, on Company-owned land in Las Vegas, Nevada, adjacent to its existing SpringHill Suites. See Note 10 titled "Contract Commitments" in the Company's Unaudited Consolidated Financial Statements and Notes thereto, appearing elsewhere in this Quarterly Report on Form 10-Q for more detail regarding this development project.

*Cash Management Activities*

As part of the cost sharing arrangements discussed in Note 6, titled "Related Parties" in the Company's Unaudited Consolidated Financial Statements and Notes thereto, appearing elsewhere in this Quarterly Report on Form 10-Q, certain day-to-day transactions may result in amounts due to or from the Company and ARG. To efficiently manage cash disbursements, the Company or ARG may make payments for the other company. Under the cash management process, each company may advance or defer up to $1 million at any time. Each quarter, any outstanding amounts are settled between the companies. This process allows each company to minimize its cash on hand and reduces the cost for each company. The amounts outstanding at any point in time are not significant to either of the companies.

***Impact of Inflation***

The Company relies on the performance of its hotels and the ability of its hotel operators to increase revenue to keep pace with inflation. Hotel operators, in general, possess the ability to adjust room rates daily to reflect the effects of inflation on the Company's operating expenses. However, competitive pressures and other factors could limit the operators' ability to raise room rates and, as a result, the Company may not be able to offset such increased operating expenses with increases in revenue. Additionally, tariff-induced inflation could increase certain operating and renovation costs, as some supplies, furniture, fixtures and equipment and construction materials are imported, as well as negatively impact leisure travel by reducing the discretionary income of consumers.

***Business Interruption*** 

Being in the real estate industry, the Company is exposed to natural disasters on both a local and regional scale. Although management believes the Company has adequate insurance to cover this exposure, there can be no assurance that such events will not have a material adverse effect on the Company's financial position or results of operations.

***Seasonality*** 

The hotel industry historically has been seasonal in nature. Seasonal variations in occupancy at the Company's hotels may cause quarterly fluctuations in its revenues. Generally, occupancy rates and hotel revenues for the Company's hotels are greater in the second and third quarters than in the first and fourth quarters. To the extent that cash flow from operations is insufficient during any quarter due to temporary or seasonal fluctuations in revenue, the Company expects to utilize cash on hand or available financing sources to meet cash requirements.

***Critical Accounting Policies and Estimates***

The preparation of the Company's financial statements in accordance with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Company's financial statements, the reported amounts of revenues and expenses during the reporting periods and the related disclosures in the Company's Unaudited Consolidated Financial Statements and Notes thereto. The Company has discussed those policies and estimates that it believes are critical and require the use of complex judgment in their application in the Company's Annual Report on Form 10-K for the year

------

ended December 31, 2025, filed with the Securities and Exchange Commission on February 23, 2026. There have been no material changes to the Company's critical accounting policies or the methods or assumptions applied.

***Subsequent Events***

On April 15, 2026, the Company paid approximately $18.9 million, or $0.08 per common share, in distributions to shareholders of record as of March 31, 2026.

On April 15, 2026, the Company completed the sale of its 124-room Hampton located in Rochester, Minnesota, for a gross sales price of approximately $8.7 million.

On April 20, 2026, the Company declared a monthly cash distribution of $0.08 per common share. The distribution is payable on May 15, 2026, to shareholders of record as of April 30, 2026.

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**Item 3. Quantitative and Qualitative Disclosures About Market Risk**

As of March 31, 2026, the Company's financial instruments were not exposed to significant market risk due to foreign currency exchange risk, commodity price risk or equity price risk. However, the Company is exposed to interest rate risk due to possible changes in short-term interest rates as it invests its cash or borrows on its Revolving Credit Facility and due to the portion of its variable-rate debt that is not fixed by interest rate swaps. As of March 31, 2026, after giving effect to interest rate swaps, as described below, approximately $579.1 million, or approximately 37% of the Company's total debt outstanding, was subject to variable interest rates. Based on the Company's variable-rate debt outstanding as of March 31, 2026, every 100 basis point change in interest rates will impact the Company's annual net income by approximately $5.8 million, all other factors remaining the same. With the exception of interest rate swap transactions, the Company has not engaged in transactions in derivative financial instruments or derivative commodity instruments.

As of March 31, 2026, the Company's variable-rate debt consisted of its unsecured credit facilities, including $89.1 million in borrowings outstanding under its Revolving Credit Facility and $1.2 billion of term loans. Currently, the Company uses interest rate swaps to manage its interest rate risk on a portion of its variable-rate debt. As of March 31, 2026, the Company had 11 interest rate swap agreements that effectively fix the interest payments on approximately $685.0 million of the Company's variable-rate debt outstanding with swap maturity dates ranging from May 2026 to December 2029. Under the terms of the Company's interest rate swaps, the Company pays a fixed rate of interest and receives a floating rate of interest equal to the annual rate of the one-month SOFR. See Note 5 titled "Fair Value of Financial Instruments" in the Company's Unaudited Consolidated Financial Statements and Notes thereto, appearing elsewhere in this Quarterly Report on Form 10-Q, for a description of the Company's interest rate swaps as of March 31, 2026.

In addition to its variable-rate debt and interest rate swaps discussed above, the Company has assumed or originated fixed interest rate mortgages payable to lenders under permanent financing arrangements as well as two fixed-rate senior notes facilities totaling $125 million. The following table summarizes the annual maturities and average interest rates of the Company's mortgage debt and borrowings outstanding under its unsecured credit facilities at March 31, 2026. All dollar amounts are in thousands.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **April 1 - December 31, 2026** | **2027** | **2028** | **2029** | **2030** | **Thereafter** | **Total** | **Fair<br>Market<br>Value** |
| Total debt: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Maturities | $292147 | $278602 | $334066 | $162294 | $460016 | $44638 | $1571763 | $1552811 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average interest rates <sup>(1)</sup> | 4.7% | 4.7% | 4.6% | 4.6% | 4.6% | 3.7% |  |  |
| Variable-rate debt: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Maturities | $219100 | $275000 | $300000 | $85000 | $385000 | $- | $1264100 | $1265253 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average interest rates <sup>(1)</sup> | 4.8% | 4.8% | 4.8% | 4.9% | 5.0% | n/a |  |  |
| Fixed-rate debt: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Maturities | $73047 | $3602 | $34066 | $77294 | $75016 | $44638 | $307663 | $287558 |
| &nbsp;&nbsp;&nbsp;&nbsp;Average interest rates | 4.0% | 4.1% | 4.1% | 3.9% | 3.6% | 3.7% |  |  |

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(1)The average interest rate gives effect to interest rate swaps, as applicable.

**Item 4. Controls and Procedures**

The Company's senior management evaluated the effectiveness of the Company's disclosure controls and procedures as of the end of the period covered by this report. Based on this evaluation process, the Company's senior management has concluded that the Company's disclosure controls and procedures were effective as of March 31, 2026. There have been no changes in the Company's internal control over financial reporting that occurred during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

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**PART II. OTHER INFORMATION**

**Item 1. Legal Proceedings**

The Company is or may be a party to various legal proceedings that arise in the ordinary course of business. The Company is not currently involved in any litigation nor, to management's knowledge, is any litigation threatened against the Company where the outcome would, in management's judgment based on information currently available to the Company, have a material adverse effect on the Company's consolidated financial position or results of operations.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds**

The following is a summary of all share repurchases during the first quarter of 2026.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Issuer Purchases of Equity Securities** | **Issuer Purchases of Equity Securities** | **Issuer Purchases of Equity Securities** | **Issuer Purchases of Equity Securities** | **Issuer Purchases of Equity Securities** |
| | **(a)** | **(b)** | **(c)** | **(d)** |
| <br>**Period** | **Total Number of Shares Purchased** | **Average Price Paid per Share** | **Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs** | **Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in thousands)** <sup>(1)</sup> |
| January 1 - January 31, 2026 | - | - |  | $242507 |
| February 1 - February 28, 2026 | - | - |  | $242507 |
| March 1 - March 31, 2026 <sup>(2)</sup> | 133475 | $12.10 |  | $242507 |
| Total | 133475 |  |  |  |

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(1)Represents amount outstanding under the Company's authorized $262.6 million Share Repurchase Program. This program, which was announced in 2015 and most recently extended in May 2025, may be suspended or terminated at any time by the Company and will end in July 2026 if not terminated or extended earlier.

(2)Includes common shares surrendered to the Company to satisfy tax withholding obligations associated with the issuance of common shares awarded to employees.

**Item 5. Other Information.**

*Trading Arrangements*

No director or officer of the Company adopted, terminated or modified a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K, during the three months ended March 31, 2026.

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**Item 6. Exhibits**

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| | |
|:---|:---|
| **Exhibit**<br>**Number** | **Description of Documents** |
| 3.1 | [<u>Amended and Restated Articles of Incorporation of the Company, as amended (Incorporated by reference to Exhibit 3.1 to the Company's quarterly report on Form 10-Q (SEC File No. 001-37389) filed August 6, 2018)</u>](https://www.sec.gov/Archives/edgar/data/1418121/000118518518001353/ex_119574.htm) |
| 3.2 | [<u>Third Amended and Restated Bylaws of the Company</u> **<u>(</u>**<u>Incorporated by reference to Exhibit 3.2 to the Company's quarterly report on Form 10-Q (SEC File No. 001-37389) filed May 18, 2020)</u>](https://www.sec.gov/Archives/edgar/data/1418121/000118518520000697/ex_186357.htm) |
| 10.1 | [<u>First Amendment dated as of March 18, 2026, to the Third Amended and Restated Credit Agreement dated as of July 25, 2022, among the Company, as borrower, certain subsidiaries of the Company, as guarantors, Bank of America, N.A., as Administrative Agent, KeyBank National Association and Wells Fargo Bank, National Association, as Co-Syndication Agents, U.S. Bank National Association, as Documentation Agent, Regions Bank as Managing Agent, the Lenders and Letter of Credit Issuers party thereto, and BofA Securities, Inc., KeyBanc Capital Markets, Wells Fargo Securities, LLC and U.S. Bank National Association, as Joint Lead Arrangers and Joint Bookrunners</u> **<u>(FILED HEREWITH)</u>**](aple-ex10_1.htm) |
| 31.1 | [<u>Certification of the Company's Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</u> **<u>(FILED HEREWITH)</u>**](aple-ex31_1.htm) |
| 31.2 | [<u>Certification of the Company's Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</u> **<u>(FILED HEREWITH)</u>**](aple-ex31_2.htm) |
| 32.1 | [<u>Certification of the Company's Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</u> **<u>(FURNISHED HEREWITH)</u>**](aple-ex32_1.htm) |
| 101 | The following materials from the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations and Comprehensive Income, (iii) the Consolidated Statements of Shareholders' Equity, (iv) the Consolidated Statements of Cash Flows, and (v) related notes to these financial statements, tagged as blocks of text and in detail **(FILED HEREWITH)** |
| 104 | The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, formatted as Inline XBRL and contained in Exhibit 101 |

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------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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| | | |
|:---|:---|:---|
| **Apple Hospitality REIT, Inc.** | **Apple Hospitality REIT, Inc.** |  |
| By: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Justin G. Knight  | Date: May 4, 2026 |
|  | **Justin G. Knight,** |  |
|  | **Chief Executive Officer**<br>**(Principal Executive Officer)** |  |
| By: | /s/ Elizabeth S. Perkins  | Date: May 4, 2026 |
|  | **Elizabeth S. Perkins,** |  |
|  | **Chief Financial Officer**<br>**(Principal Financial Officer)** |  |

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## Exhibit 10.1

Exhibit 10.1

**<u>FIRST AMENDMENT TO CREDIT AGREEMENT</u>**

FIRST AMENDMENT, dated as of March 18, 2026 (this "<u>Amendment</u>"), to the Third Amended and Restated Credit Agreement (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the "<u>Credit Agreement</u>") dated as of July 25, 2022, among Apple Hospitality REIT, Inc., a Virginia corporation (the "<u>Borrower</u>"), certain subsidiaries of the Borrower from time to time party thereto, as Guarantors, the Lenders party thereto and Bank of America, N.A., as Administrative Agent, Swing Line Lender and an L/C Issuer. Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Credit Agreement.

WHEREAS, the Borrower has requested that the Credit Agreement be modified as herein set forth; and

WHEREAS, the Borrower, the Guarantors, the Lenders party hereto and the Administrative Agent have agreed to modify the Credit Agreement as herein set forth solely upon the terms and conditions provided for in this Amendment.

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

**SECTION 1.** **<u>Amendment to Credit Agreement</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1** **<u>Section 1.01 of the Credit Agreement</u>**. Section 1.01 of the Credit Agreement is hereby amended by amending and restating the definitions of "Daily Simple SOFR" and "Term SOFR" in their entirety to read as follows:

# " <u>Daily Simple SOFR</u> " means the rate per annum equal to SOFR determined for any day pursuant to the definition thereof. Any change in Daily Simple SOFR shall be effective from and including the date of such change without further notice. If the rate as so determined would be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

# " <u>Term SOFR</u> " means
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for any Interest Period with respect to a Term SOFR loan, the rate per annum equal to the Term SOFR Screen Rate two U.S. Government Securities Business Days prior to the commencement of such interest period with a term equivalent to such Interest Period; <u>provided</u> that if the rate is not published prior to 11:00 a.m. on such determination date then Term SOFR means the Term SOFR Screen Rate on the first U.S. Government Securities Business Day immediately prior thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for any interest calculation with respect to a Base Rate Loan on any date, the rate per annum equal to the Term SOFR Screen Rate with a term of one month commencing that day; <u>provided</u> that if the rate is not published prior to 11:00 a.m. on such determination date then Term SOFR means the Term SOFR Screen Rate with a term of one month commencing on the first U.S. Government Securities Business Day immediately prior thereto;

## <u>provided</u> that if Term SOFR determined in accordance with either of the foregoing provisions (a) or (b) of this definition would otherwise be less than zero, Term SOFR shall
255378778

------

## be deemed to be zero for purposes of this Agreement (except for the Term A-1 Hedged Portion and the Term A-2 Hedged Portion).
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2** **<u>Section 1.01 of the Credit Agreement</u>**. Section 1.01 of the Credit Agreement is hereby further amended by deleting the definition of "SOFR Adjustment" therefrom.

**SECTION 2.** **<u>Conditions of Effectiveness</u>.** This Amendment shall become effective as of the first date on which the Administrative Agent shall have received counterparts of this Amendment duly executed by each of the Lenders, the Loan Parties and the Administrative Agent.

**SECTION 3.** **<u>Representations and Warranties</u>**. Each of the Loan Parties reaffirms and restates the representations and warranties set forth in the Credit Agreement and in the other Loan Documents and all such representations and warranties shall be true and correct in all material respects on the date hereof with the same force and effect as if made on such date (except to the extent (i) such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall be true and correct as of such earlier date, (ii) any representation or warranty that is already by its terms qualified as to "materiality", "Material Adverse Effect" or similar language shall be true and correct in all respects after giving effect to such qualification). Each of the Loan Parties represents and warrants (which representations and warranties shall survive the execution and delivery hereof) to the Administrative Agent and the Lenders that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)it has all requisite power and authority to execute, deliver and perform its obligations under this Amendment and the transactions contemplated hereby and has taken or caused to be taken all necessary action to authorize the execution, delivery and performance of this Amendment and the transactions contemplated hereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)no approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against, any Loan Party of this Amendment, except for filings for reporting purposes required under applicable securities laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)this Amendment has been duly executed and delivered on its behalf by a duly authorized officer, and constitutes its legal, valid and binding obligation enforceable in accordance with its terms, except as such enforceability may be limited by bankruptcy insolvency, reorganization, receivership, moratorium or other laws affecting creditors' rights generally and by general principles of equity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)no Default shall exist or would result from the consummation of the transactions contemplated by this Amendment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)the execution, delivery and performance by it of this Amendment will not (i) contravene the terms of any of its Organization Documents; (ii) conflict with or result in any breach or contravention of, or the creation of any Lien under, or require any payment to be made under (x) any Contractual Obligation to which such Loan Party is a party or affecting such Loan Party or the properties of such Loan Party or any of its Subsidiaries or (y) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Person or its property is subject; or (iii) violate any Law.

**SECTION 4.** **<u>Affirmation of Guarantors</u>**. Each Guarantor hereby approves and consents to this Amendment and the transactions contemplated by this Amendment and the Credit Agreement as amended by this Amendment and agrees and affirms that its guarantee of the Obligations

------

continues to be in full force and effect and is hereby ratified and confirmed in all respects and shall apply to the Credit Agreement, as amended hereby, and all of the other Loan Documents, as such are amended, restated, supplemented or otherwise modified from time to time in accordance with their terms.

**SECTION 5.** **<u>Ratification</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Credit Agreement, as amended by this Amendment, and the other Loan Documents remain in full force and effect and are hereby ratified and affirmed by the Loan Parties. The amendments contained in Section 1 hereof shall be deemed to have prospective application only. This Agreement is not intended to and shall not constitute a novation. Each of the Loan Parties hereby (i) confirms and agrees that the Borrower is truly and justly indebted to the Administrative Agent and the Lenders in the aggregate amount of the Obligations without defense, counterclaim or offset of any kind whatsoever, other than payment in full, and (ii) reaffirms and admits the validity and enforceability of the Credit Agreement, as amended by this Amendment, and the other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)This Amendment shall be limited precisely as written and, except as expressly provided herein, shall not be deemed (i) to be a consent granted pursuant to, or a waiver, modification or forbearance of, any term or condition of the Credit Agreement, any other Loan Document or any of the instruments or agreements referred to therein or a waiver of any Default or Event of Default under the Credit Agreement, whether or not known to the Administrative Agent, any L/C Issuer or any of the Lenders, or (ii) to prejudice any right or remedy which the Administrative Agent, any L/C Issuer or any Lender may now have or have in the future against any Person under or in connection with the Credit Agreement, the Credit Agreement as amended hereby, any other Loan Document or any of the instruments or agreements referred to therein or any of the transactions contemplated thereby.

**SECTION 6.** **<u>Modifications</u>**. Neither this Amendment, nor any provision hereof, may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the parties hereto.

**SECTION 7.** **<u>References</u>**. Each reference in the Credit Agreement to "this Agreement," "hereunder," "hereof," "herein," or words of like import, and each reference in each other Loan Document (and the other documents and instruments delivered pursuant to or in connection therewith) to the "Credit Agreement", "thereunder", "thereof" or words of like import, shall mean and be a reference to the Credit Agreement as modified hereby and as the Credit Agreement may in the future be amended, restated, supplemented or modified from time to time.

**SECTION 8.** **<u>Amendment as a Loan Document</u>**. The Loan Parties acknowledge and agree that this Amendment constitutes a Loan Document, and without limiting the generality of the foregoing, the provisions of Sections 11.04 [*Expenses; Indemnity; Damage Waiver*], 11.14 [*Governing Law; Jurisdiction; Etc.*], 11.15 [*Waiver of Jury Trial*] and 11.17 [*Electronic Execution; Electronic Records; Counterparts*] are incorporated herein by reference as if set forth herein in full, *mutatis mutandis.* 

**SECTION 9.** **<u>Successors and Assigns</u>**. The provisions of this Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

**SECTION 10.** **<u>Severability</u>**. If any provision of this Amendment shall be held invalid or unenforceable in whole or in part in any jurisdiction, such provision shall, as to such jurisdiction, be ineffective to the extent of such invalidity or enforceability without in any manner affecting the validity or enforceability of such provision in any other jurisdiction or the remaining provisions of this Amendment in any jurisdiction.

------

**SECTION 11.** **<u>Headings</u>**. Section headings in this Amendment are included for convenience of reference only and are not to affect the construction of, or to be taken into consideration in interpreting, this Amendment.

**SECTION 12.** **<u>Entire Agreement</u>**. THIS AMENDMENT REPRESENTS THE FINAL AGREEMENT AMONG THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

[Signature pages immediately follow.]

------

*IN WITNESS WHEREOF*, the Loan Parties, the Administrative Agent and the undersigned Lenders have caused this Amendment to be duly executed by their respective authorized officers as of the day and year first above written.

**BORROWER:**

<br> **APPLE HOSPITALITY REIT, INC.,**

a Virginia corporation

By: <u>/s/ Matthew Rash</u> 

Name: Matthew Rash

Title: Senior Vice President

**GUARANTORS:**

**APPLE REIT SEVEN, INC.**

**APPLE SEVEN HOSPITALITY, INC.**

**APPLE SEVEN HOSPITALITY MANAGEMENT, INC.** 

**APPLE SEVEN HOSPITALITY OWNERSHIP, INC.**

**APPLE SEVEN MANAGEMENT SERVICES GP, INC.** 

**APPLE SEVEN MANAGEMENT SERVICES LP, INC.**

**APPLE SEVEN MANAGEMENT SERVICES NEW**

&nbsp;&nbsp;&nbsp;&nbsp;**ORLEANS GP, INC.**

**APPLE SEVEN SERVICES HIGHLANDS RANCH,<br> INC.**

**APPLE SEVEN SERVICES PROVO-SAN DIEGO,<br> INC.**

**APPLE SEVEN SERVICES RICHMOND, INC.<br>APPLE SEVEN SPE RICHMOND, INC.,**

each a Virginia corporation

By: <u>/s/ Matthew Rash</u> 

Name: Matthew Rash

Title: President of, and on behalf of, each of the 11 entities listed above

Signature Page to First Amendment to Apple Third A&R Credit Agreement

------

**APPLE EIGHT CALIFORNIA, INC.**

**APPLE EIGHT HOSPITALITY, INC.**

**APPLE EIGHT HOSPITALITY MANAGEMENT,<br> INC.**

**APPLE EIGHT HOSPITALITY MASSACHUSETTS,<br> INC.**

**APPLE EIGHT HOSPITALITY MASSACHUSETTS<br> SERVICES, INC**

**APPLE EIGHT HOSPITALITY OWNERSHIP, INC.**

**APPLE EIGHT NC GP, INC.**

**APPLE EIGHT NC LP, INC.**

**APPLE EIGHT SERVICES JACKSONVILLE, INC.**

**APPLE EIGHT SERVICES WESTFORD, INC.**

**APPLE EIGHT SPE SAVANNAH, INC.**

**APPLE REIT EIGHT, INC.,**

each a Virginia corporation

By: <u>/s/ Matthew Rash</u> 

Name: Matthew Rash

Title: President of, and on behalf of, each of the 12 entities listed above

Signature Page to First Amendment to Apple Third A&R Credit Agreement

------

**APPLE NINE FLORIDA SERVICES, INC.**

**APPLE NINE HOSPITALITY, INC.**

**APPLE NINE HOSPITALITY MANAGEMENT,<br> INC.** 

**APPLE NINE HOSPITALITY OWNERSHIP, INC.**

**APPLE NINE HOSPITALITY TEXAS SERVICES,<br> INC.**

**APPLE NINE HOSPITALITY TEXAS SERVICES<br> II, INC.**

**APPLE NINE HOSPITALITY TEXAS SERVICES<br> III, INC.**

**APPLE NINE HOSPITALITY TEXAS SERVICES<br> IV, INC.**

**APPLE NINE HOSPITALITY TEXAS SERVICES<br> V, INC.**

**APPLE NINE LOUISIANA GP, INC.**

**APPLE NINE NC GP, INC.**

**APPLE NINE NC LP, INC.**

**APPLE NINE PENNSYLVANIA, INC.**

**APPLE NINE SPE MADISON, INC.**

**APPLE NINE SPE MALVERN, INC.,**

each a Virginia corporation

By: <u>/s/ Matthew Rash</u> 

Name: Matthew Rash

Title: President of, and on behalf of, each of the 15 entities listed above

Signature Page to First Amendment to Apple Third A&R Credit Agreement

------

**APPLE REIT TEN, INC.**

**APPLE TEN FLORIDA SERVICES, INC.**

**APPLE TEN HOSPITALITY, INC.**

**APPLE TEN HOSPITALITY MANAGEMENT, INC.**

**APPLE TEN HOSPITALITY OWNERSHIP, INC.**

**APPLE TEN HOSPITALITY TEXAS SERVICES, INC.**

**APPLE TEN HOSPITALITY TEXAS SERVICES<br> II, INC.**

**APPLE TEN HOSPITALITY TEXAS SERVICES<br> III, INC.**

**APPLE TEN HOSPITALITY TEXAS SERVICES<br> IV, INC.**

**APPLE TEN ILLINOIS MM, INC.**

**APPLE TEN ILLINOIS SERVICES, INC.**

**APPLE TEN NC GP, INC.**

**APPLE TEN NC LP, INC.**

**APPLE TEN OKLAHOMA SERVICES, INC.**

**APPLE TEN SPE CAPISTRANO, INC.**

**APPLE TEN SPE CALIBRASKA, INC.**

**APPLE TEN SERVICES DENVER, INC.**

**APPLE TEN SERVICES GAINESVILLE, INC.**

**APPLE TEN SERVICES KNOXVILLE II, INC.**

**APPLE TEN SERVICES SCOTTSDALE, INC.**

**APPLE TEN SERVICES OHARE, INC.**

**APPLE TEN SERVICES CAPISTRANO, INC.**

**APPLE TEN SERVICES COLORADO SPRINGS, INC.**

**APPLE TEN SERVICES FRANKLIN I, INC.**

**APPLE TEN SERVICES FRANKLIN II, INC.**

**APPLE TEN SPE COLORADO SPRINGS, INC.**

**APPLE TEN SPE FRANKLIN I, INC.**

**APPLE TEN SPE FRANKLIN II, INC.,**

each a Virginia corporation

By: <u>/s/ Matthew Rash</u> 

Name: Matthew Rash

Title: President of, and on behalf of, each of the 28 entities listed above

Signature Page to First Amendment to Apple Third A&R Credit Agreement

------

**APPLE EIGHT HOSPITALITY MIDWEST, LLC**

**APPLE EIGHT HOSPITALITY TEXAS**

&nbsp;&nbsp;&nbsp;&nbsp;**SERVICES, LLC**

**APPLE HOSPITALITY FTW CHARLIE, LLC**

**APPLE HOSPITALITY FTW NORTHTON, LLC**

**APPLE HOSPITALITY GRAPEVINE, LLC**

**APPLE HOSPITALITY HBC, LLC**

**APPLE HOSPITALITY KIRKLAND, LLC**

**APPLE HOSPITALITY MEMPHIS, LLC**

**APPLE HOSPITALITY PORTLAND PEARL**

&nbsp;&nbsp;&nbsp;&nbsp;**DISTRICT, LLC**

**APPLE HOSPITALITY SDRBC, LLC**

**APPLE HOSPITALITY SEATTLE LAKE** 

&nbsp;&nbsp;&nbsp;&nbsp;**UNION, LLC**

**APPLE NINE MISSOURI, LLC**

**APPLE NINE OKLAHOMA, LLC**

**APPLE TEN ALABAMA SERVICES, LLC** 

**APPLE TEN NEBRASKA, LLC**

**APPLE TEN OKLAHOMA, LLC,**

each a Virginia limited liability company

By: <u>/s/ Matthew Rash</u> 

Name: Matthew Rash

Title: Manager of, and on behalf of, each of the 16 entities listed above

**SUNBELT-12CF, LLC,**

a Florida limited liability company

By: <u>/s/ Matthew Rash</u> 

Name: Matthew Rash

Title: Manager

**APPLE TEN NORTH CAROLINA, L.P.** ,

a Virginia limited partnership

By: **APPLE TEN NC GP, INC.**, a Virginia corporation

General Partner

By: <u>/s/ Matthew Rash</u> 

Name: Matthew Rash

Title: President

Signature Page to First Amendment to Apple Third A&R Credit Agreement

------

**APPLE TEN ILLINOIS, LLC** ,

a Virginia limited liability company

By: **APPLE TEN ILLINOIS MM, INC.**, a Virginia corporation

Managing Member

By: <u>/s/ Matthew Rash</u> 

Name: Matthew Rash

Title: President

**APPLE NINE NORTH CAROLINA, L.P.**,

a Virginia limited partnership

By: **APPLE NINE NC GP, INC.**, a Virginia corporation

General Partner

By: <u>/s/ Matthew Rash</u> 

Name: Matthew Rash

Title: President

**APPLE NINE MALVERN PENNSYLVANIA BUSINESS TRUST**,

a Pennsylvania business trust

By: **APPLE NINE SPE MALVERN, INC.**, a Virginia corporation

Trustee

By: <u>/s/ Matthew Rash</u> 

Name: Matthew Rash

Title: President

**APPLE NINE LOUISIANA, L.P.**,

a Virginia limited partnership

By: **APPLE NINE LOUISIANA GP, INC.**, a Virginia corporation

General Partner

By: <u>/s/ Matthew Rash</u> 

Name: Matthew Rash

Title: President

Signature Page to First Amendment to Apple Third A&R Credit Agreement

------

**APPLE NINE PENNSYLVANIA BUSINESS TRUST**,

a Pennsylvania Business Trust

By: **APPLE NINE PENNSYLVANIA, INC.**

a Virginia corporation

Sole Trustee

By: <u>/s/ Matthew Rash</u> 

Name: Matthew Rash

Title: President

**APPLE EIGHT NORTH CAROLINA, L.P.,**

a Virginia limited partnership

By: **APPLE EIGHT NC GP, INC.,** a Virginia

corporation

General Partner

By: <u>/s/ Matthew Rash</u> 

Name: Matthew Rash

Title: President

**APPLE SEVEN SERVICES, LLC, APPLE SEVEN SERVICES II, LLC,**

each a Virginia limited liability company

By: **APPLE SEVEN MANAGEMENT SERVICES GP, INC.**, a Virginia corporation

Managing Member of, and on behalf of, each of the two above entities

By: <u>/s/ Matthew Rash</u> 

Name: Matthew Rash

Title: President

Signature Page to First Amendment to Apple Third A&R Credit Agreement

------

**APPLE SEVEN SERVICES SOUTHEAST, L.P.,**

a Virginia limited partnership

By: **APPLE SEVEN MANAGEMENT SERVICES GP, INC.**, a Virginia corporation

General Partner

By: <u>/s/ Matthew Rash</u> 

Name: Matthew Rash

Title: President

**APPLE SEVEN SERVICES NEW ORLEANS, L.P.,**

a Virginia limited partnership

By: **APPLE SEVEN MANAGEMENT SERVICES NEW ORLEANS GP, INC.**, a Virginia corporation

General Partner

By: <u>/s/ Matthew Rash</u> 

Name: Matthew Rash

Title: President

**APPLE TEN BUSINESS TRUST,**

a Virginia business trust

By: **APPLE TEN HOSPITALITY OWNERSHIP, INC.**, a Virginia corporation

Sole Trustee

By: <u>/s/ Matthew Rash</u> 

Name: Matthew Rash

Title: President

Signature Page to First Amendment to Apple Third A&R Credit Agreement

------

**APPLE HOSPITALITY ANCHORAGE 7056, LLC**

**APPLE HOSPITALITY CLEVELAND 7138, LLC**

**APPLE HOSPITALITY DC 7146, LLC**

**APPLE HOSPITALITY DENVER 7801, LLC**

**APPLE HOSPITALITY LAS VEGAS 7145, LLC**

**APPLE HOSPITALITY LOUISVILLE 7136, LLC**

**APPLE HOSPITALITY NASHVILLE 7139, LLC**

**APPLE HOSPITALITY MADISON 7131, LLC**

**APPLE HOSPITALITY NEW ORLEANS 7427, LLC**

**APPLE HOSPITALITY PITTSBURGH 7137, LLC**

**APPLE HOSPITALITY RENTON 7143, LLC**

**APPLE HOSPITALITY SLC GARAGE 7142, LLC**

**APPLE HOSPITALITY SLCC 7140, LLC**

**APPLE HOSPITALITY SLCH 7141, LLC**

**APPLE HOSPITALITY SOMERSET 7601, LLC**

**APPLE HOSPITALITY SOUTH JORDAN 7144, LLC**

**APPLE HOSPITALITY TAMPA 7149, LLC**

**APPLE HOSPITALITY TUKWILA 7648, LLC**

**APPLE HOSPITALITY WESTFORD 7621, LLC**

**APPLE TRS CLEVELAND 7138, LLC**

**APPLE TRS DC 7146, LLC**

**APPLE TRS LAS VEGAS 7145, LLC**

**APPLE TRS LOUISVILLE 7136, LLC**

**APPLE TRS MADISON 7131, LLC**

**APPLE TRS NASHVILLE 7139, LLC**

**APPLE TRS PITTSBURGH 7137, LLC**

**APPLE TRS RENTON 7143, LLC**

**APPLE TRS SLCC 7140, LLC**

**APPLE TRS SLCH 7141, LLC**

**APPLE TRS SOUTH JORDAN 7144, LLC**

**APPLE TRS TAMPA 7149, LLC,**

each a Virginia limited liability company

By: <u>/s/ Matthew Rash</u> 

Name: Matthew Rash

Title: Manager of, and on behalf of, each of the 31 entities listed above

Signature Page to First Amendment to Apple Third A&R Credit Agreement

------

**ADMINISTRATIVE AGENT:**

**bank of america, n.a.**, as Administrative Agent

By: <u>/s/ Paley Chen</u> 

Name: Paley Chen

Title: Vice President

Signature Page to First Amendment to Apple Third A&R Credit Agreement

------

**LENDERS:**

**bank of america, n.a.**, as a Lender

By: <u>/s/ Matthew R. Lohr</u> 

Name: Matthew R. Lohr

Title: Senior Vice President

Signature Page to First Amendment to Apple Third A&R Credit Agreement

------

**KEYBANK NATIONAL ASSOCIATION**, as a Lender

By: <u>/s/ Tayven Hike</u> 

Name: Tayven Hike

Title: Senior Banker

Signature Page to First Amendment to Apple Third A&R Credit Agreement

------

**U.S. BANK NATIONAL ASSOCIATION**, as a Lender

By: <u>/s/ Germaine Korhone</u> 

Name: Germaine Korhone

Title: Senior Vice President

Signature Page to First Amendment to Apple Third A&R Credit Agreement

------

**WELLS FARGO BANK, NATIONAL ASSOCIATION**, as a Lender

By: <u>/s/ Joshua Federer</u> 

Name: Joshua Federer

Title: Vice President

Signature Page to First Amendment to Apple Third A&R Credit Agreement

------

**BMO HARRIS BANK, N.A.**, as a Lender

By: <u>/s/ Rebecca Liu Chabanon</u> 

Name: Rebecca Liu Chabanon

Title: Director

Signature Page to First Amendment to Apple Third A&R Credit Agreement

------

**PNC BANK, NATIONAL ASSOCIATION**, as a Lender

By: <u>/s/ Shari L. Reams-Henofer</u> 

Name: Shari L. Reams-Henofer

Title: Senior Vice President

Signature Page to First Amendment to Apple Third A&R Credit Agreement

------

**regions bank**, as a Lender

By: <u>/s/ Ghi S. Gavin</u> 

Name: Ghi S. Gavin

Title: Senior Vice President

Signature Page to First Amendment to Apple Third A&R Credit Agreement

------

**SUMITOMO MITSUI BANKING CORPORATION**, as a Lender

By: <u>/s/ Cindy Hwee</u> 

Name: Cindy Hwee

Title: Director

Signature Page to First Amendment to Apple Third A&R Credit Agreement

------

**TRUIST BANK**, as a Lender

By: <u>/s/ C. Vincent Hughes, Jr.</u> 

Name: C. Vincent Hughes, Jr.

Title: Director

Signature Page to First Amendment to Apple Third A&R Credit Agreement

------

**THE BANK OF NOVA SCOTIA**, as a Lender

By: <u>/s/ Lucia Mijares Garza</u> 

Name: Lucia Mijares Garza

Title: Director, Corporate Banking - US

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real Estate, Gaming & Leisure

Signature Page to First Amendment to Apple Third A&R Credit Agreement

------

**SCOTIA Financing (USA) LLC**, as a Lender

By: <u>/s/ David Dewar</u> 

Name: David Dewar

Title: Authorized Signatory

Signature Page to First Amendment to Apple Third A&R Credit Agreement

------

**the huntington national bank**, as a Lender

By: <u>/s/ Joshua Arundel</u> 

Name: Joshua Arundel

Title: Senior Vice President

Signature Page to First Amendment to Apple Third A&R Credit Agreement

------

**ATLANTIC UNION BANK**, as a Lender

By: <u>/s/ René B. Shepperson</u> 

Name: René B. Shepperson

Title: Senior Vice President

Signature Page to First Amendment to Apple Third A&R Credit Agreement

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## Exhibit 31.1

**Exhibit 31.1** 

**CERTIFICATION** 

I, Justin G. Knight, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this report on Form 10-Q of Apple Hospitality REIT, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's Board of Directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: May 4, 2026 | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Justin G. Knight  |
|  | **Justin G. Knight**<br>**Chief Executive Officer** |
|  | **Apple Hospitality REIT, Inc.** |

---

------

## Exhibit 31.2

**Exhibit 31.2** 

**CERTIFICATION** 

I, Elizabeth S. Perkins, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this report on Form 10-Q of Apple Hospitality REIT, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's Board of Directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: May 4, 2026 | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Elizabeth S. Perkins  |
|  | **Elizabeth S. Perkins**<br>**Chief Financial Officer**<br>**Apple Hospitality REIT, Inc.** |

---

------

## Exhibit 32.1

**Exhibit 32.1** 

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002** 

In connection with the Quarterly Report of Apple Hospitality REIT, Inc., (the "Company") on Form 10-Q for the quarter ended March 31, 2026 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that: (1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of March 31, 2026 and for the period then ended.

**Apple Hospitality REIT, Inc.**

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| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;/s/ Justin G. Knight  |
| **Justin G. Knight** |
| **Chief Executive Officer** |
| /s/ Elizabeth S. Perkins  |
| **Elizabeth S. Perkins** |
| **Chief Financial Officer** |
| Date: May 4, 2026 |

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