Apple Hospitality REIT, Inc (APLE) has reported 0.93 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $34.36 million, or $0.15 a share in the quarter, compared with $34.69 million, or $0.20 a share for the same period last year.
Revenue during the quarter surged 30.49 percent to $292.92 million from $224.49 million in the previous year period.
Cost of revenue surged 32.93 percent or $34.44 million during the quarter to $139.04 million. Gross margin for the quarter contracted 87 basis points over the previous year period to 52.53 percent.
Total expenses were $246.59 million for the quarter, up 36.44 percent or $65.86 million from year-ago period. Operating margin for the quarter contracted 367 basis points over the previous year period to 15.82 percent.
Operating income for the quarter was $46.33 million, compared with $43.75 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $99.08 million compared with $78.61 million in the prior year period. At the same time, adjusted EBITDA margin contracted 119 basis points in the quarter to 33.82 percent from 35.02 percent in the last year period.
Occupancy revenue was $269.39 million for the quarter, up 30.68 percent or $63.24 million. Revenue from other hotel operating activities was $23.53 million for the quarter, up 28.33 percent or $5.20 million from year-ago period.
Justin Knight, president and chief executive officer, commented, "We are pleased with our results for the first quarter, which highlight the benefits of our broad geographic diversification. Comparable Hotels RevPAR grew by 1.4 percent, in line with our expectations, despite a 16 percent decline in Los Angeles, one of our largest markets, due to the outsized growth from the Porter Ranch gas leak in 2016. We continue to believe that our large, geographically diversified, upscale portfolio of Marriott and Hilton branded hotels and our strong, flexible balance sheet position us well as we continue throughout the year."
Total assets jumped 33.62 percent or $1,251.85 million to $4,974.92 million on Mar. 31, 2017. On the other hand, total liabilities were at $1,487.08 million as on Mar. 31, 2017, up 35.87 percent or $392.61 million from year-ago.
Return on assets moved down 24 basis points to 0.93 percent in the quarter. At the same time, return on equity moved down 33 basis points to 0.99 percent in the quarter.
Debt increases substantiallyTotal debt was at $1,402.84 million as on Mar. 31, 2017, up 37.39 percent or $381.80 million from year-ago. Shareholders equity stood at $3,487.85 million as on Mar. 31, 2017, up 32.69 percent or $859.24 million from year-ago. As a result, debt to equity ratio went up 1 basis points to 0.40 percent in the quarter.
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