Apple Hospitality REIT, Inc (APLE) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $41.55 million, or $ 0.19 a share in the quarter, against a net loss of $17.79 million, or $0.10 a share in the last year period. Revenue during the quarter surged 32.58 percent to $282.43 million from $213.03 million in the previous year period.
Cost of revenue surged 32.53 percent or $33.45 million during the quarter to $136.26 million. Gross margin for the quarter expanded 2 basis points over the previous year period to 51.75 percent.
Total expenses were $229.40 million for the quarter, up 3.40 percent or $7.54 million from year-ago period. Operating margin for the quarter period stood at positive 18.78 percent as compared to a negative 4.14 percent for the previous year period.
Operating income for the quarter was $53.03 million, compared with an operating loss of $8.83 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $94.77 million compared with $69.66 million in the prior year period. At the same time, adjusted EBITDA margin improved 86 basis points in the quarter to 33.56 percent from 32.70 percent in the last year period.
Occupancy revenue was $257.36 million for the quarter, up 33.52 percent or $64.61 million. Revenue from other hotel operating activities was $25.07 million for the quarter, up 23.61 percent or $4.79 million from year-ago period.
Justin Knight, president and chief executive officer, commented, "We are pleased to report another year of solid performance for Apple Hospitality. In 2016, we achieved Comparable Hotels RevPAR growth of 2.7 percent and Adjusted EBITDA growth of 17.6 percent. Given the strength of our hospitality platform and the significant transactional and operational flexibility of our balance sheet, we believe we are well positioned to enhance shareholder value despite a more moderate growth environment."
Total assets jumped 33.77 percent or $1,257.11 million to $4,979.88 million on Dec. 31, 2016. On the other hand, total liabilities were at $1,462.82 million as on Dec. 31, 2016, up 35.99 percent or $387.10 million from year-ago.
Return on assets was at 1.07 percent in the quarter against a negative 0.24 percent in the last year period. Return on equity was at 1.18 percent in the quarter against a negative 0.67 percent in the last year period.
Debt increases substantially
Total debt was at $1,337.96 million as on Dec. 31, 2016, up 34.05 percent or $339.86 million from year-ago. Shareholders equity stood at $3,517.06 million as on Dec. 31, 2016, up 32.87 percent or $870.01 million from year-ago. As a result, debt to equity ratio was almost stable at 0.38 percent in the quarter, when compared with the last year period.
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