Apple Hospitality REIT Reports Results of Operations for Second Quarter 2017

RICHMOND, Va. (August 7, 2017) – Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or “Apple Hospitality”) today announced results of operations for the second quarter of 2017.

Selected Statistical and Financial Data

As of and For the Three and Six Months Ended June 30

(Unaudited) (in thousands, except statistical and per share amounts)⁽¹⁾

	Three Months Ended									Six Months Ended
	June 30,									June 30,
	2017			2016			% Change			2017			2016			% Change

Net income	$	87,606		$	54,718			60.1	%	$	121,971		$	89,404			36.4	%
Net income per share	$	0.39		$	0.31			25.8	%	$	0.55		$	0.51			7.8	%

Adjusted EBITDA	$	125,987		$	100,514			25.3	%	$	225,065		$	179,124			25.6	%
Comparable Hotels Adjusted Hotel EBITDA	$	132,039		$	135,966			(2.9	%)	$	236,810		$	242,704			(2.4	%)
Comparable Hotels Adjusted Hotel EBITDA Margin		39.9	%		41.5	%	(160 bps)				38.2	%		39.6	%	(140 bps)
Modified funds from operations (MFFO)	$	113,650		$	90,364			25.8	%	$	200,531		$	159,678			25.6	%
MFFO per share	$	0.51		$	0.52			(1.9	%)	$	0.90		$	0.91			(1.1	%)

ADR (Actual)	$	137.56		$	138.16			(0.4	%)	$	135.58		$	135.79			(0.2	%)
Occupancy (Actual)		81.5	%		82.2	%		(0.9	%)		78.0	%		78.2	%		(0.3	%)
RevPAR (Actual)	$	112.10		$	113.59			(1.3	%)	$	105.70		$	106.13			(0.4	%)

Comparable Hotels ADR	$	137.53		$	137.08			0.3	%	$	135.42		$	134.99			0.3	%
Comparable Hotels Occupancy		81.5	%		81.9	%		(0.5	%)		78.0	%		77.8	%		0.3	%
Comparable Hotels RevPAR	$	112.08		$	112.27			(0.2	%)	$	105.59		$	104.97			0.6	%

Distributions paid	$	66,903		$	52,353			27.8	%	$	133,811		$	104,713			27.8	%
Distributions paid per share	$	0.30		$	0.30			-		$	0.60		$	0.60			-

Total debt outstanding	$	1,309,064
Total debt to total capitalization ⁽²⁾		23.9	%

(1) Explanations of and reconciliations to net income of Adjusted EBITDA, Comparable Hotels Adjusted Hotel EBITDA and MFFO are included below.

(2) Total debt outstanding divided by total debt outstanding plus equity market capitalization based on the Company’s closing share price of $18.71 on June 30, 2017.

Comparable Hotels is defined as the 235 hotels owned by the Company as of June 30, 2017. For hotels acquired during the periods noted, the Company has included, as applicable, results of those hotels for periods prior to the Company's ownership, and for dispositions, results have been excluded for the Company's period of ownership. Results for periods prior to the Company's ownership have not been included in the Company's actual Consolidated Financial Statements and are included only for comparison purposes. Results included for periods prior to the Company's ownership are based on information from the prior owner of each hotel and have not been audited or adjusted.

Justin Knight, President and Chief Executive Officer, commented, “As expected, lackluster business demand, calendar shifts, continued wage pressure, and outsized growth in 2016 in a few of our larger markets, made the second quarter challenging for us. I am pleased with our ability to navigate those challenges and continue to produce stable operating results during the quarter. While we anticipate continued headwinds from restrained corporate spending and rising labor costs, we have confidence that our broad geographic diversification, exposure to a wide mix of demand generators, and focus on the select-service and extended-stay segment of the industry position us to be successful.”

Page | 1

Hotel Portfolio Overview

Apple Hospitality owns a highly diversified hotel portfolio, which helps insulate the revenue stream of the Company from regional economic dislocations that may occur from time to time. As of June 30, 2017, Apple Hospitality owned 235 hotels with 29,978 rooms, comprised of 116 Marriott® branded hotels and 119 Hilton® branded hotels, with locations in 87 markets throughout 33 states.

Transactional Activity

Acquisitions

Effective September 1, 2016, Apple Hospitality completed its merger with Apple REIT Ten, Inc. (“Apple Ten”). The merger added 56 Marriott® and Hilton® branded primarily select-service and extended-stay hotels with 7,209 guestrooms to the Company’s portfolio. As consideration in the merger, the Company issued approximately 49 million common shares and paid approximately $94 million to the Apple Ten shareholders, and assumed approximately $257 million of debt.

Dispositions

As previously reported, Apple Hospitality completed the sale of its 224-room Hilton® hotel in Dallas, Texas, on April 20, 2017, for a gross sales price of approximately $56 million, including debt assumed by the buyer of approximately $27 million. As a result of the sale, the Company recognized a gain of approximately $16 million during the second quarter of 2017.

In June 2017, the Company entered into a contract for the sale of its 316-room Marriott® hotel in Fairfax, Virginia for a gross sales price of $42 million. The contract is subject to a number of conditions to closing, therefore, there can be no assurance that a closing will occur. If closing conditions are met, it is anticipated that the sale would be completed by the end of 2017. The Company currently estimates a gain on sale of approximately $1 million if a closing occurs.

Capital Improvements

Apple Hospitality consistently reinvests in its hotels to maintain and enhance each property’s relevance and competitive position within its respective market. During the six months ended June 30, 2017, the Company invested approximately $24 million in capital expenditures. The Company plans to continue to reinvest in its hotels and anticipates investing an additional $35 to $45 million in capital improvements during the remainder of 2017, which includes various scheduled renovation projects for approximately 15 to 20 properties.

Balance Sheet

As of June 30, 2017, Apple Hospitality had approximately $1.3 billion of total outstanding indebtedness with a current combined weighted average interest rate of approximately 3.4 percent for the remainder of 2017. Excluding unamortized debt issuance costs and fair value adjustments, the Company’s total outstanding indebtedness is comprised of approximately $433 million in property-level debt secured by 28 hotels and $876 million outstanding on its unsecured credit facilities. In July 2017, the Company entered into an unsecured $85 million seven-year term loan. The net proceeds from the term loan were used to pay down borrowings on the Company’s revolving credit facility. The term loan is subject to requirements and covenants similar to the Company’s unsecured $965 million credit facility. The interest rate for the term loan is equal to an annual rate of the one-month LIBOR plus a margin ranging from 1.80% to 2.60%, depending upon the Company’s leverage ratio. In conjunction with the term loan, the Company entered into an interest rate swap agreement to effectively fix the interest rate on $75 million of the $85 million term loan at 3.76%. Apple Hospitality’s undrawn capacity on its unsecured credit facilities at July 31, 2017, was approximately $340 million. The Company’s total debt to total capitalization at June 30, 2017, was approximately 24 percent, which provides Apple Hospitality with financial flexibility to fund capital requirements and pursue opportunities in the marketplace.

Page | 2

Shareholder Distributions

Apple Hospitality paid distributions of $0.30 per common share during the three-month period ended June 30, 2017. Based on the Company’s common share closing price of $18.10 on August 3, 2017, the annualized distribution of $1.20 per common share represents an annual yield of approximately 6.6 percent. The Company’s Board of Directors, in consultation with management, will continue to regularly monitor the Company’s distribution rate relative to the performance of its hotels, capital improvement needs, varying economic cycles, acquisitions, and dispositions. At its discretion, the Company’s Board of Directors may make adjustments as determined to be prudent in relation to other cash requirements of the Company.

2017 Outlook

Apple Hospitality is updating its operational and financial outlook for 2017. This outlook, which is based on management’s current view of both operating and economic fundamentals of the Company’s existing portfolio of hotels, does not take into account any unanticipated developments in its business or changes in its operating environment, nor does it take into account any unannounced hotel acquisitions or dispositions. Comparable Hotels RevPAR Growth and Comparable Hotels Adjusted Hotel EBITDA Margin % guidance include properties acquired, including those acquired through the Apple Ten merger, as if the hotels were owned as of January 1, 2016, and exclude completed dispositions since January 1, 2016. For the full year 2017, the Company anticipates:

	2017 Guidance⁽¹⁾
	Low-End	High-End

Net income	$207 Million	$225 Million

Comparable Hotels RevPAR Growth	0.0%	1.5%

Comparable Hotels Adjusted Hotel EBITDA Margin %	36.8%	37.5%

Adjusted EBITDA	$425 Million	$440 Million

(1)	Explanations of and reconciliations to net income guidance of Adjusted EBITDA guidance are included below.

Earnings Call

The Company will host a quarterly conference call for investors and interested parties on Tuesday, August 8, 2017, at 10:00 a.m. Eastern Time. The conference call will be accessible by telephone and the Internet. To access the call, participants from within the U.S. should dial (877) 407-9039, and participants from outside the U.S. should dial (201) 689-8470. Participants may also access the call via live webcast by visiting the Investor Information section of the Company's website at ir.applehospitalityreit.com. A replay of the call will be available from approximately 1:00 p.m. Eastern Time on August 8, 2017, through 11:59 p.m. Eastern Time on August 22, 2017. To access the replay, the domestic dial-in number is (844) 512-2921, the international dial-in number is (412) 317-6671, and the passcode is 13665456. The archive of the webcast will be available on the Company's website for a limited time.

About Apple Hospitality REIT, Inc.

Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust (REIT) that owns one of the largest portfolios of upscale, select-service hotels in the United States. The Company’s portfolio consists of 235 hotels, with approximately 30,000 guestrooms, diversified across the Hilton® and Marriott® families of brands with locations in urban, high-end suburban and developing markets throughout 33 states. For more information, please visit www.applehospitalityreit.com.

Page | 3

Apple Hospitality REIT 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 FFO (“MFFO”); Earnings Before Interest, Income Taxes, Depreciation and Amortization (“EBITDA”); Adjusted EBITDA (“Adjusted EBITDA”); and Adjusted Hotel EBITDA (“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, Adjusted EBITDA, 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, Adjusted EBITDA, and Adjusted Hotel EBITDA, as calculated by the Company, may not be comparable to FFO, MFFO, EBITDA, Adjusted EBITDA, 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. Reconciliations of these non-GAAP financial measures to net income (loss) are provided in the following pages.

Forward-Looking Statements Disclaimer

Certain statements contained in this press release other than historical facts may be considered forward-looking statements. These forward-looking statements are predictions and generally can be 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 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 Apple Hospitality to effectively acquire and dispose of properties; the ability of Apple Hospitality to successfully integrate pending transactions and implement its operating strategy; changes in general political, economic and competitive conditions and specific market conditions; adverse changes in the real estate and real estate capital markets; financing risks; the outcome of current and future litigation, including any legal proceedings that have been or may be instituted against Apple Hospitality or others; regulatory proceedings or inquiries; and changes in laws or regulations or interpretations of current laws and regulations that impact Apple Hospitality’s business, assets or classification as a real estate investment trust. Although Apple Hospitality 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 press release 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 Apple Hospitality or any other person that the results or conditions described in such statements or the objectives and plans of Apple Hospitality will be achieved. In addition, Apple Hospitality’s qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code. Readers should carefully review Apple Hospitality’s financial statements and the notes thereto, as well as the risk factors described in Apple Hospitality’s filings with the Securities and Exchange Commission, including, but not limited to, in the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Any forward-looking statement that Apple Hospitality makes speaks only as of the date of such statement. Apple Hospitality 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.

Contact:

Apple Hospitality REIT, Inc.

Kelly Clarke, Vice President, Investor Relations

(804) 727-6321

kclarke@applereit.com

For additional information or to receive press releases by email, visit www.applehospitalityreit.com.

Page | 4

Apple Hospitality REIT, Inc.

Consolidated Balance Sheets

(in thousands, except share data)

	June 30,			December 31,
	2017			2016
	(unaudited)
Assets
Investment in real estate, net of accumulated depreciation
of $644,718 and $557,597, respectively	$	4,770,883		$	4,823,489
Assets held for sale		-			39,000
Restricted cash-furniture, fixtures and other escrows		28,244			29,425
Due from third party managers, net		57,676			31,460
Other assets, net		47,771			56,509
Total Assets	$	4,904,574		$	4,979,883

Liabilities
Revolving credit facility	$	301,300		$	270,000
Term loans		571,461			570,934
Mortgage debt		435,556			497,029
Accounts payable and other liabilities		88,685			124,856
Total Liabilities		1,397,002			1,462,819

Shareholders' Equity
Preferred stock, authorized 30,000,000 shares; none issued
and outstanding		-			-
Common stock, no par value, authorized 800,000,000 shares;
issued and outstanding 223,055,340 and 222,938,648 shares, respectively		4,455,191			4,453,205
Accumulated other comprehensive income		4,959			4,589
Distributions greater than net income		(952,578	)		(940,730	)
Total Shareholders' Equity		3,507,572			3,517,064

Total Liabilities and Shareholders' Equity	$	4,904,574		$	4,979,883

Note:

The Consolidated Balance Sheets and corresponding footnotes can be found in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017.

Page | 5

Apple Hospitality REIT, Inc.

Consolidated Statements of Operations and Comprehensive Income

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2017			2016			2017			2016
Revenues:
Room	$	306,283		$	237,340		$	575,676		$	443,490
Other		25,421			20,296			48,953			38,633
Total revenue		331,704			257,636			624,629			482,123

Expenses:
Operating		80,345			61,459			155,499			118,288
Hotel administrative		25,217			18,857			50,053			37,055
Sales and marketing		26,270			19,896			50,379			37,915
Utilities		10,193			7,719			19,946			15,319
Repair and maintenance		12,279			9,605			24,195			18,689
Franchise fees		14,163			10,933			26,637			20,378
Management fees		11,545			8,947			21,757			16,984
Property taxes, insurance and other		17,821			13,076			34,748			25,528
Ground lease		2,839			2,506			5,655			4,972
General and administrative		6,151			5,060			12,905			9,888
Transaction and litigation costs (reimbursements)		(2,586	)		1,116			(2,586	)		1,409
Loss on impairment of depreciable real estate assets		-			-			7,875			-
Depreciation		43,893			33,824			87,660			67,308
Total expenses		248,130			192,998			494,723			373,733

Operating income		83,574			64,638			129,906			108,390

Interest and other expense, net		(11,849	)		(9,560	)		(23,566	)		(18,363	)
Gain on sale of real estate		16,140			-			16,140			-

Income before income taxes		87,865			55,078			122,480			90,027

Income tax expense		(259	)		(360	)		(509	)		(623	)

Net income	$	87,606		$	54,718		$	121,971		$	89,404

Other comprehensive income (loss):
Interest rate derivatives		(1,175	)		(5,501	)		370			(12,195	)

Comprehensive income	$	86,431		$	49,217		$	122,341		$	77,209

Basic and diluted net income per common share	$	0.39		$	0.31		$	0.55		$	0.51

Weighted average common shares outstanding - basic and diluted		223,052			174,667			223,049			174,667

Note:

The Consolidated Statements of Operations and Comprehensive Income and corresponding footnotes can be found in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017.

Page | 6

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics and Statistical Data

(Unaudited) (in thousands except statistical data)

	Three Months Ended									Six Months Ended
	June 30,									June 30,
	2017			2016			% Change			2017			2016			% Change

Room revenue	$	305,743		$	303,305			0.8	%	$	572,478		$	566,038			1.1	%
Other revenue		25,209			24,501			2.9	%		47,665			46,688			2.1	%
Total revenue		330,952			327,806			1.0	%		620,143			612,726			1.2	%

Total operating expenses		198,913			191,840			3.7	%		383,333			370,022			3.6	%

Adjusted Hotel EBITDA	$	132,039		$	135,966			(2.9	%)	$	236,810		$	242,704			(2.4	%)
Adjusted Hotel EBITDA Margin %		39.9	%		41.5	%	(160 bps		)		38.2	%		39.6	%	(140 bps		)


ADR (Comparable Hotels)	$	137.53		$	137.08			0.3	%	$	135.42		$	134.99			0.3	%
Occupancy (Comparable Hotels)		81.5	%		81.9	%		(0.5	%)		78.0	%		77.8	%		0.3	%
RevPAR (Comparable Hotels)	$	112.08		$	112.27			(0.2	%)	$	105.59		$	104.97			0.6	%

ADR (Actual)	$	137.56		$	138.16			(0.4	%)	$	135.58		$	135.79			(0.2	%)
Occupancy (Actual)		81.5	%		82.2	%		(0.9	%)		78.0	%		78.2	%		(0.3	%)
RevPAR (Actual)	$	112.10		$	113.59			(1.3	%)	$	105.70		$	106.13			(0.4	%)

Reconciliation to Actual Results

Total Revenue (Actual)	$	331,704		$	257,636					$	624,629		$	482,123
Revenue from acquisitions prior to ownership		-			76,234						-			141,713
Revenue from dispositions		(705	)		(6,017	)					(4,392	)		(11,160	)
Lease revenue intangible amortization		(47	)		(47	)					(94	)		50
Comparable Hotels Total Revenue	$	330,952		$	327,806					$	620,143		$	612,726

Adjusted Hotel EBITDA (AHEBITDA) (Actual)	$	132,138		$	105,574					$	237,970		$	189,012
AHEBITDA from acquisitions prior to ownership		-			32,073						-			56,567
AHEBITDA from dispositions		(99	)		(1,681	)					(1,160	)		(2,875	)
Comparable Hotels AHEBITDA	$	132,039		$	135,966					$	236,810		$	242,704

Note:

Reconciliation of net income to non-GAAP financial measures is included in the following pages.

Page | 7

Apple Hospitality REIT, Inc.

Comparable Hotels Quarterly Operating Metrics and Statistical Data

(Unaudited) (in thousands except statistical data)

	Three Months Ended
	9/30/2015			12/31/2015			3/31/2016			6/30/2016			9/30/2016			12/31/2016			3/31/2017			6/30/2017

Room revenue	$	287,714		$	246,492		$	262,733		$	303,305		$	296,647		$	253,823		$	266,735		$	305,743
Other revenue		22,939			23,654			22,187			24,501			23,563			23,563			22,456			25,209
Total revenue		310,653			270,146			284,920			327,806			320,210			277,386			289,191			330,952

Total operating expenses		185,833			173,972			178,182			191,840			196,002			179,266			184,420			198,913

Adjusted Hotel EBITDA	$	124,820		$	96,174		$	106,738		$	135,966		$	124,208		$	98,120		$	104,771		$	132,039
Adjusted Hotel EBITDA Margin %		40.2	%		35.6	%		37.5	%		41.5	%		38.8	%		35.4	%		36.2	%		39.9	%


ADR (Comparable Hotels)	$	132.53		$	126.59		$	132.66		$	137.08		$	134.79		$	127.71		$	133.09		$	137.53
Occupancy (Comparable Hotels)		80.3	%		71.7	%		73.6	%		81.9	%		80.1	%		72.4	%		74.4	%		81.5	%
RevPAR (Comparable Hotels)	$	106.47		$	90.73		$	97.65		$	112.27		$	108.03		$	92.43		$	99.02		$	112.08

ADR (Actual)	$	133.18		$	127.04		$	133.16		$	138.16		$	136.04		$	127.81		$	133.39		$	137.56
Occupancy (Actual)		80.5	%		71.9	%		74.1	%		82.2	%		80.2	%		72.4	%		74.4	%		81.5	%
RevPAR (Actual)	$	107.19		$	91.36		$	98.66		$	113.59		$	109.07		$	92.52		$	99.27		$	112.10

Reconciliation to Actual Results

Total Revenue (Actual)	$	240,555		$	213,033		$	224,487		$	257,636		$	276,471		$	282,431		$	292,925		$	331,704
Revenue from acquisitions prior to ownership		75,548			62,799			65,479			76,234			49,452			-			-			-
Revenue from dispositions		(5,417	)		(5,653	)		(5,143	)		(6,017	)		(5,666	)		(4,998	)		(3,687	)		(705	)
Lease revenue intangible amortization		(33	)		(33	)		97			(47	)		(47	)		(47	)		(47	)		(47	)
Comparable Hotels Total Revenue	$	310,653		$	270,146		$	284,920		$	327,806		$	320,210		$	277,386		$	289,191		$	330,952

Adjusted Hotel EBITDA (AHEBITDA) (Actual)	$	95,738		$	74,790		$	83,438		$	105,574		$	106,707		$	99,291		$	105,832		$	132,138
AHEBITDA from acquisitions prior to ownership		30,557			22,825			24,494			32,073			18,985			-			-			-
AHEBITDA from dispositions		(1,475	)		(1,441	)		(1,194	)		(1,681	)		(1,484	)		(1,171	)		(1,061	)		(99	)
Comparable Hotels AHEBITDA	$	124,820		$	96,174		$	106,738		$	135,966		$	124,208		$	98,120		$	104,771		$	132,039

Note:

Reconciliation of net income to non-GAAP financial measures is included in the following pages.

Page | 8

Apple Hospitality REIT, Inc.

Reconciliation of Net Income (Loss) to EBITDA, Adjusted EBITDA and Adjusted Hotel EBITDA

(Unaudited) (in thousands)

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 considers the exclusion or inclusion of certain additional items from EBITDA (Adjusted EBITDA) useful, including (i) the exclusion of transaction and litigation costs (reimbursements), gains or losses from sales of real estate, and the loss on impairment of depreciable real estate assets, as these items do not represent ongoing operations, and (ii) the exclusion of non-cash straight-line ground lease expense, as this expense does not reflect the underlying performance of the related hotels.

The Company further excludes actual corporate-level general and administrative expense for the Company from Adjusted EBITDA (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 is used by management to measure the performance of the Company’s hotels and effectiveness of the operators of the hotels.

The following table reconciles the Company’s GAAP net income (loss) to EBITDA, Adjusted EBITDA and Adjusted Hotel EBITDA on a quarterly basis from September 30, 2015 through June 30, 2017.

	Three Months Ended
	9/30/2015		12/31/2015			3/31/2016		6/30/2016		9/30/2016			12/31/2016			3/31/2017		6/30/2017
Net income (loss)	$	46,968	$	(17,792	)	$	34,686	$	54,718	$	13,694		$	41,554		$	34,365	$	87,606
Depreciation		32,351		33,244			33,484		33,824		37,343			43,512			43,767		43,893
Amortization of favorable and unfavorable leases, net		133		133			262		119		132			161			165		168
Interest and other expense, net		9,302		8,867			8,803		9,560		10,156			11,507			11,717		11,849
Income tax (benefit) expense		138		26			263		360		(7	)		(185	)		250		259
EBITDA		88,892		24,478			77,498		98,581		61,318			96,549			90,264		143,775
Transaction and litigation costs (reimbursements)		842		(710	)		293		1,116		36,452			(2,872	)		-		(2,586	)
(Gain) Loss on sale of real estate		-		72			-		-		-			153			-		(16,140	)
Loss on impairment of depreciable real estate assets		-		45,000			-		-		5,471			-			7,875		-
Non-cash straight-line ground lease expense		829		819			819		817		843			940			939		938
Adjusted EBITDA	$	90,563	$	69,659		$	78,610	$	100,514	$	104,084		$	94,770		$	99,078	$	125,987
General and administrative expense		5,175		5,131			4,828		5,060		2,623			4,521			6,754		6,151
Adjusted Hotel EBITDA	$	95,738	$	74,790		$	83,438	$	105,574	$	106,707		$	99,291		$	105,832	$	132,138

Page | 9

Apple Hospitality REIT, Inc.

2017 Guidance Reconciliation of Net Income to EBITDA and Adjusted EBITDA

(Unaudited) (in thousands)

The guidance of net income, EBITDA and Adjusted EBITDA, are forward-looking statements and are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause actual results and performance to differ materially from those expressed or implied by these forecasts. Although the Company believes the expectations reflected in the forecasts are based upon reasonable assumptions, there can be no assurance that the expectations will be achieved or that the results will not be materially different. Risks that may affect these assumptions and forecasts include, but are not limited to the following: changes in political, economic, competitive and specific market conditions; the amount and timing of acquisitions and dispositions of hotel properties; the level of capital expenditures may change significantly, which will directly affect the level of depreciation expense, interest expense and net income; the amount and timing of debt repayments may change significantly based on market conditions, which will directly affect the level of interest expense and net income; the amount and timing of transactions involving the Company's common stock may change based on market conditions; and other risks and uncertainties associated with the Company's business described herein and in filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2016.

The following table reconciles the Company’s GAAP net income guidance to EBITDA and Adjusted EBITDA guidance for the year ended December 31, 2017.

	Year Ended December 31, 2017
	Low-End			High-End
Net income	$	206,600		$	224,600
Depreciation		176,000			174,500
Amortization of favorable and unfavorable leases, net		675			675
Interest and other expense, net		48,000			46,000
Income tax expense		850			1,350
EBITDA		432,125			447,125
Transaction and litigation reimbursements		(2,600	)		(2,600	)
Gain on sale of real estate		(16,100	)		(16,100	)
Loss on impairment of depreciable real estate assets		7,875			7,875
Non-cash straight-line ground lease expense		3,700			3,700
Adjusted EBITDA	$	425,000		$	440,000

Page | 10

Apple Hospitality REIT, Inc.

Reconciliation of Net Income to FFO and MFFO

(Unaudited) (in thousands)

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 (computed in accordance with generally accepted accounting principles (“GAAP”)), excluding gains or losses from sales of real estate, extraordinary items as defined by GAAP, the cumulative effect of changes in accounting principles, plus real estate related depreciation, amortization and impairments, and adjustments for unconsolidated partnerships and joint ventures. 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 further adjusts FFO (MFFO) for certain additional items that are not in NAREIT’s definition of FFO, including: (i) the exclusion of transaction and litigation costs (reimbursements), as these costs do not represent ongoing operations, and (ii) the exclusion of non-cash straight-line ground lease expense, as this expense does 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.

The following table reconciles the Company’s GAAP net income to FFO and MFFO for the three and six months ended June 30, 2017 and 2016.

	Three Months Ended June 30,					Six Months Ended June 30,
	2017			2016		2017			2016
Net income	$	87,606		$	54,718	$	121,971		$	89,404
Depreciation of real estate owned		43,664			33,594		87,201			66,848
Gain on sale of real estate		(16,140	)		-		(16,140	)		-
Loss on impairment of depreciable real estate assets		-			-		7,875			-
Amortization of favorable and unfavorable leases, net		168			119		333			381
Funds from operations		115,298			88,431		201,240			156,633
Transaction and litigation costs (reimbursements)		(2,586	)		1,116		(2,586	)		1,409
Non-cash straight-line ground lease expense		938			817		1,877			1,636
Modified funds from operations	$	113,650		$	90,364	$	200,531		$	159,678

Page | 11

Apple Hospitality REIT, Inc.

Debt Summary

(Unaudited) ($ in thousands)

June 30, 2017

	July 1 - December 31, 2017			2018			2019			2020			2021			Thereafter			Total		Fair Market Value
Total debt:
Maturities	$	5,329		$	11,071		$	333,008		$	451,164		$	95,311		$	413,181		$	1,309,064	$	1,306,559
Average interest rates		3.4	%		3.4	%		3.5	%		3.8	%		4.1	%		4.0	%

Variable rate debt:
Maturities	$	-		$	-		$	301,300		$	425,000		$	50,000		$	100,000		$	876,300	$	877,317
Average interest rates (1)		2.9	%		2.9	%		2.9	%		3.0	%		3.0	%		3.1	%

Fixed rate debt:
Maturities	$	5,329		$	11,071		$	31,708		$	26,164		$	45,311		$	313,181		$	432,764	$	429,242
Average interest rates		4.5	%		4.5	%		4.5	%		4.5	%		4.4	%		4.3	%

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

Note: See further information on the Company’s indebtedness in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017.

Page | 12

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics Top 20 Markets⁽¹⁾

Three Months ended June 30

(Unaudited)

Top 20 Markets			Occupancy									ADR							RevPAR							% of Adjusted Hotel EBITDA
	# of Hotels		Q2 2017			Q2 2016			% Change			Q2 2017		Q2 2016		% Change			Q2 2017		Q2 2016		% Change			Q2 2017
Top 20 Markets
Los Angeles/Long Beach, CA		8		92.4	%		91.6	%		0.9	%	$	171.39	$	184.76		(7.2	)%	$	158.45	$	169.29		(6.4	)%		5.6	%
San Diego, CA		7		84.4	%		80.5	%		4.9	%	$	154.63	$	151.73		1.9	%	$	130.56	$	122.08		6.9	%		5.2	%
Chicago, IL		8		80.1	%		81.5	%		(1.8	)%	$	133.37	$	133.48		(0.1	)%	$	106.79	$	108.78		(1.8	)%		4.6	%
Nashville, TN		5		88.9	%		92.8	%		(4.3	)%	$	180.75	$	179.11		0.9	%	$	160.67	$	166.28		(3.4	)%		4.1	%
Seattle, WA		3		89.7	%		88.7	%		1.0	%	$	211.03	$	195.35		8.0	%	$	189.24	$	173.37		9.2	%		3.4	%
Anaheim/Santa Ana, CA		6		86.4	%		85.4	%		1.2	%	$	146.19	$	143.44		1.9	%	$	126.34	$	122.53		3.1	%		3.4	%
Washington, DC-MD-VA		5		81.6	%		81.7	%		(0.1	)%	$	146.40	$	148.56		(1.5	)%	$	119.41	$	121.30		(1.6	)%		3.1	%
Richmond/Petersburg, VA		4		80.2	%		75.4	%		6.4	%	$	150.94	$	147.48		2.3	%	$	121.03	$	111.13		8.9	%		3.1	%
Dallas, TX		9		77.8	%		83.7	%		(7.0	)%	$	122.61	$	122.80		(0.2	)%	$	95.44	$	102.79		(7.2	)%		3.0	%
Omaha, NE		4		81.0	%		81.9	%		(1.1	)%	$	160.33	$	172.64		(7.1	)%	$	129.90	$	141.41		(8.1	)%		2.8	%
Austin, TX		7		76.5	%		85.5	%		(10.5	)%	$	129.20	$	134.42		(3.9	)%	$	98.84	$	114.93		(14.0	)%		2.2	%
Denver, CO		3		84.6	%		82.2	%		2.9	%	$	163.63	$	158.56		3.2	%	$	138.41	$	130.39		6.2	%		2.2	%
North Carolina East		5		84.7	%		86.4	%		(1.9	)%	$	130.75	$	126.05		3.7	%	$	110.76	$	108.90		1.7	%		2.2	%
Phoenix, AZ		8		74.3	%		74.9	%		(0.8	)%	$	109.81	$	105.62		4.0	%	$	81.59	$	79.07		3.2	%		2.1	%
Norfolk/Virginia Beach, VA		4		86.0	%		81.0	%		6.1	%	$	150.00	$	151.70		(1.1	)%	$	128.98	$	122.93		4.9	%		2.0	%
Oklahoma City, OK		4		81.2	%		83.0	%		(2.1	)%	$	139.27	$	143.09		(2.7	)%	$	113.08	$	118.70		(4.7	)%		1.9	%
Fort Worth/Arlington, TX		5		76.9	%		86.1	%		(10.6	)%	$	132.48	$	124.21		6.7	%	$	101.88	$	106.91		(4.7	)%		1.7	%
Idaho		2		86.6	%		84.4	%		2.5	%	$	130.80	$	130.53		0.2	%	$	113.22	$	110.23		2.7	%		1.6	%
Florida Panhandle		5		81.2	%		80.6	%		0.7	%	$	128.44	$	123.95		3.6	%	$	104.34	$	99.96		4.4	%		1.6	%
Boston, MA		4		83.5	%		85.8	%		(2.6	)%	$	134.03	$	132.07		1.5	%	$	111.90	$	113.25		(1.2	)%		1.5	%
Top 20 Markets		106		82.5	%		83.3	%		(1.0	)%	$	145.56	$	145.27		0.2	%	$	120.08	$	121.08		(0.8	)%		57.3	%

All Other Markets		129		80.5	%		80.5	%		0.0	%	$	129.33	$	128.60		0.6	%	$	104.10	$	103.47		0.6	%		42.7	%


Total Portfolio		235		81.5	%		81.9	%		(0.5	)%	$	137.53	$	137.08		0.3	%	$	112.08	$	112.27		(0.2	)%		100.0	%

(1)	Based on Comparable Hotels Adjusted Hotel EBITDA contribution.

Note: Market categorization is based on STR designation.

Page | 13

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics Top 20 Markets⁽¹⁾

Six Months ended June 30

(Unaudited)

Top 20 Markets			Occupancy									ADR							RevPAR							% of Adjusted Hotel EBITDA
	# of Hotels		YTD 2017			YTD 2016			% Change			YTD 2017		YTD 2016		% Change			YTD 2017		YTD 2016		% Change			YTD 2017
Top 20 Markets
Los Angeles/Long Beach, CA		8		90.0	%		92.9	%		(3.1	)%	$	166.17	$	181.50		(8.4	)%	$	149.56	$	168.63		(11.3	)%		5.9	%
San Diego, CA		7		82.4	%		77.4	%		6.4	%	$	152.16	$	147.33		3.3	%	$	125.31	$	114.08		9.8	%		5.4	%
Phoenix, AZ		8		78.1	%		77.4	%		0.9	%	$	137.08	$	132.33		3.6	%	$	107.05	$	102.47		4.5	%		4.0	%
Anaheim/Santa Ana, CA		6		85.8	%		85.5	%		0.4	%	$	146.92	$	143.11		2.7	%	$	126.06	$	122.35		3.0	%		3.8	%
Nashville, TN		5		81.5	%		87.5	%		(6.9	)%	$	172.43	$	170.58		1.1	%	$	140.53	$	149.27		(5.9	)%		3.8	%
Dallas, TX		9		76.7	%		80.6	%		(4.8	)%	$	122.27	$	122.09		0.1	%	$	93.77	$	98.37		(4.7	)%		3.4	%
Chicago, IL		8		71.6	%		70.7	%		1.2	%	$	125.30	$	127.43		(1.7	)%	$	89.65	$	90.14		(0.5	)%		3.3	%
Richmond/Petersburg, VA		4		76.6	%		72.3	%		6.0	%	$	150.46	$	146.83		2.5	%	$	115.24	$	106.11		8.6	%		3.1	%
Seattle, WA		3		82.5	%		81.9	%		0.7	%	$	192.26	$	178.12		7.9	%	$	158.55	$	145.84		8.7	%		2.9	%
Washington, DC-MD-VA		5		71.7	%		73.6	%		(2.6	)%	$	141.30	$	138.17		2.3	%	$	101.32	$	101.69		(0.4	)%		2.6	%
Austin, TX		7		76.8	%		81.3	%		(5.6	)%	$	131.03	$	134.94		(2.9	)%	$	100.57	$	109.71		(8.3	)%		2.6	%
Omaha, NE		4		74.9	%		75.8	%		(1.1	)%	$	143.43	$	147.71		(2.9	)%	$	107.45	$	111.92		(4.0	)%		2.2	%
Denver, CO		3		78.9	%		75.4	%		4.7	%	$	152.91	$	150.67		1.5	%	$	120.71	$	113.57		6.3	%		2.0	%
Oklahoma City, OK		4		78.7	%		80.0	%		(1.6	)%	$	136.58	$	138.81		(1.6	)%	$	107.46	$	111.00		(3.2	)%		1.9	%
Miami/Hialeah, FL		3		88.4	%		89.8	%		(1.6	)%	$	156.19	$	169.13		(7.6	)%	$	138.02	$	151.92		(9.1	)%		1.9	%
Fort Lauderdale, FL		3		87.5	%		88.1	%		(0.6	)%	$	152.93	$	153.20		(0.2	)%	$	133.88	$	134.97		(0.8	)%		1.9	%
North Carolina East		5		79.5	%		80.2	%		(0.8	)%	$	116.94	$	113.95		2.6	%	$	93.01	$	91.35		1.8	%		1.8	%
Fort Worth/Arlington, TX		5		74.7	%		83.6	%		(10.6	)%	$	130.90	$	123.21		6.2	%	$	97.83	$	103.01		(5.0	)%		1.7	%
Houston, TX		6		65.4	%		64.0	%		2.1	%	$	122.06	$	130.70		(6.6	)%	$	79.78	$	83.68		(4.7	)%		1.7	%
Idaho		2		81.9	%		80.2	%		2.1	%	$	128.28	$	125.52		2.2	%	$	105.08	$	100.68		4.4	%		1.6	%
Top 20 Markets		105		78.6	%		79.2	%		(0.7	)%	$	143.13	$	143.52		(0.3	)%	$	112.54	$	113.67		(1.0	)%		57.5	%

All Other Markets		130		77.3	%		76.3	%		1.3	%	$	127.42	$	125.87		1.2	%	$	98.50	$	96.02		2.6	%		42.5	%


Total Portfolio		235		78.0	%		77.8	%		0.3	%	$	135.42	$	134.99		0.3	%	$	105.59	$	104.97		0.6	%		100.0	%

(1)	Based on Comparable Hotels Adjusted Hotel EBITDA contribution.

Note: Market categorization is based on STR designation.

Page | 14

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Region

Three Months ended June 30

(Unaudited)

Region			Occupancy									ADR							RevPAR							% of Adjusted Hotel EBITDA
	# of Hotels		Q2 2017			Q2 2016			% Change			Q2 2017		Q2 2016		% Change			Q2 2017		Q2 2016		% Change			Q2 2017
STR Region
East North Central		15		79.7	%		80.7	%		(1.3	)%	$	132.80	$	132.71		0.1	%	$	105.89	$	107.16		(1.2	)%		7.4	%
East South Central		27		82.3	%		83.1	%		(0.9	)%	$	131.41	$	130.87		0.4	%	$	108.15	$	108.74		(0.5	)%		9.4	%
Middle Atlantic		12		81.9	%		81.7	%		0.3	%	$	162.61	$	168.65		(3.6	)%	$	133.21	$	137.78		(3.3	)%		4.6	%
Mountain		19		79.2	%		79.7	%		(0.5	)%	$	124.42	$	118.83		4.7	%	$	98.57	$	94.65		4.1	%		7.7	%
New England		4		83.5	%		85.8	%		(2.6	)%	$	134.03	$	132.07		1.5	%	$	111.90	$	113.25		(1.2	)%		1.5	%
Pacific		32		88.0	%		86.3	%		2.1	%	$	165.91	$	164.88		0.6	%	$	146.08	$	142.25		2.7	%		21.9	%
South Atlantic		63		83.1	%		81.9	%		1.5	%	$	132.11	$	130.44		1.3	%	$	109.84	$	106.85		2.8	%		26.6	%
West North Central		17		81.2	%		80.4	%		1.0	%	$	136.03	$	139.21		(2.3	)%	$	110.50	$	111.93		(1.3	)%		7.0	%
West South Central		46		75.0	%		79.5	%		(5.7	)%	$	123.92	$	125.82		(1.5	)%	$	92.91	$	100.04		(7.1	)%		13.9	%

Total Portfolio		235		81.5	%		81.9	%		(0.5	)%	$	137.53	$	137.08		0.3	%	$	112.08	$	112.27		(0.2	)%		100.0	%

Note: Region categorization is based on STR designation.

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Region

Six Months ended June 30

(Unaudited)

Region			Occupancy									ADR							RevPAR							% of Adjusted Hotel EBITDA
	# of Hotels		YTD 2017			YTD 2016			% Change			YTD 2017		YTD 2016		% Change			YTD 2017		YTD 2016		% Change			YTD 2017
STR Region
East North Central		15		72.3	%		71.7	%		0.8	%	$	126.30	$	127.22		(0.7	)%	$	91.33	$	91.26		0.1	%		6.0	%
East South Central		27		77.9	%		78.0	%		(0.0	)%	$	127.52	$	127.49		0.0	%	$	99.38	$	99.40		(0.0	)%		9.0	%
Middle Atlantic		12		75.9	%		74.8	%		1.4	%	$	153.30	$	160.14		(4.3	)%	$	116.31	$	119.81		(2.9	)%		3.4	%
Mountain		19		79.4	%		78.4	%		1.3	%	$	132.45	$	127.07		4.2	%	$	105.19	$	99.60		5.6	%		9.8	%
New England		4		72.5	%		77.7	%		(6.6	)%	$	130.75	$	129.42		1.0	%	$	94.83	$	100.53		(5.7	)%		1.2	%
Pacific		32		85.3	%		83.8	%		1.8	%	$	160.52	$	160.19		0.2	%	$	136.99	$	134.26		2.0	%		22.2	%
South Atlantic		63		79.2	%		78.4	%		1.0	%	$	132.04	$	130.33		1.3	%	$	104.64	$	102.23		2.4	%		26.9	%
West North Central		17		75.4	%		73.4	%		2.8	%	$	127.33	$	128.79		(1.1	)%	$	96.07	$	94.51		1.6	%		6.0	%
West South Central		46		73.7	%		76.4	%		(3.5	)%	$	124.36	$	125.14		(0.6	)%	$	91.69	$	95.63		(4.1	)%		15.5	%

Total Portfolio		235		78.0	%		77.8	%		0.3	%	$	135.42	$	134.99		0.3	%	$	105.59	$	104.97		0.6	%		100.0	%

Note: Region categorization is based on STR designation.

Page | 15

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Chain Scale

Three Months ended June 30

(Unaudited)

Chain Scale/Brand			Occupancy									ADR							RevPAR							% of Adjusted Hotel EBITDA
	# of Hotels		Q2 2017			Q2 2016			% Change			Q2 2017		Q2 2016		% Change			Q2 2017		Q2 2016		% Change			Q2 2017
Upscale
Courtyard		40		78.9	%		78.3	%		0.7	%	$	143.02	$	146.21		(2.2	)%	$	112.77	$	114.50		(1.5	)%		19.8	%
Hilton Garden Inn		41		80.4	%		82.5	%		(2.5	)%	$	137.60	$	136.31		1.0	%	$	110.63	$	112.39		(1.6	)%		19.3	%
Homewood Suites		34		85.4	%		85.4	%		(0.0	)%	$	137.37	$	136.78		0.4	%	$	117.35	$	116.87		0.4	%		12.6	%
Residence Inn		32		83.6	%		84.0	%		(0.4	)%	$	147.99	$	146.00		1.4	%	$	123.72	$	122.61		0.9	%		14.8	%
SpringHill Suites		17		82.1	%		80.5	%		2.1	%	$	123.98	$	122.63		1.1	%	$	101.80	$	98.67		3.2	%		6.7	%
Upscale Total		164		81.7	%		82.0	%		(0.4	)%	$	139.33	$	139.14		0.1	%	$	113.78	$	114.08		(0.3	)%		73.2	%

Upper Midscale
Fairfield Inn/Fairfield Inn & Suites		11		81.1	%		80.1	%		1.3	%	$	118.97	$	118.40		0.5	%	$	96.47	$	94.81		1.8	%		3.4	%
Hampton Inn/Hampton Inn & Suites		36		82.2	%		83.6	%		(1.7	)%	$	131.70	$	130.80		0.7	%	$	108.21	$	109.34		(1.0	)%		13.8	%
Home2 Suites		6		86.4	%		90.8	%		(4.8	)%	$	129.14	$	126.35		2.2	%	$	111.61	$	114.76		(2.7	)%		2.5	%
TownePlace Suites		12		79.8	%		80.9	%		(1.3	)%	$	107.40	$	103.21		4.1	%	$	85.73	$	83.48		2.7	%		3.1	%
Upper Midscale Total		65		82.0	%		83.1	%		(1.3	)%	$	125.58	$	124.05		1.2	%	$	102.96	$	103.05		(0.1	)%		22.8	%

Upper Upscale
Embassy Suites		2		88.7	%		87.2	%		1.7	%	$	176.62	$	178.23		(0.9	)%	$	156.71	$	155.48		0.8	%		1.4	%
Marriott		3		68.5	%		67.6	%		1.4	%	$	149.60	$	148.73		0.6	%	$	102.48	$	100.50		2.0	%		2.8	%
Renaissance		1		93.6	%		87.4	%		7.1	%	$	267.76	$	287.22		(6.8	)%	$	250.49	$	250.91		(0.2	)%		(0.2	)%
Upper Upscale Total		6		76.4	%		74.6	%		2.4	%	$	176.83	$	179.09		(1.3	)%	$	135.16	$	133.68		1.1	%		4.0	%

Total Portfolio		235		81.5	%		81.9	%		(0.5	)%	$	137.53	$	137.08		0.3	%	$	112.08	$	112.27		(0.2	)%		100.0	%

Note: Chain scale categorization is based on STR designation.

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Chain Scale

Six Months ended June 30

(Unaudited)

Chain Scale/Brand			Occupancy									ADR							RevPAR							% of Adjusted Hotel EBITDA
	# of Hotels		YTD 2017			YTD 2016			% Change			YTD 2017		YTD 2016		% Change			YTD 2017		YTD 2016		% Change			YTD 2017
Upscale
Courtyard		40		74.8	%		74.5	%		0.4	%	$	139.61	$	142.05		(1.7	)%	$	104.37	$	105.76		(1.3	)%		19.6	%
Hilton Garden Inn		41		76.3	%		77.2	%		(1.1	)%	$	135.36	$	134.11		0.9	%	$	103.32	$	103.51		(0.2	)%		18.9	%
Homewood Suites		34		82.4	%		82.3	%		0.0	%	$	138.72	$	138.40		0.2	%	$	114.29	$	113.97		0.3	%		13.4	%
Residence Inn		32		81.0	%		80.5	%		0.7	%	$	145.36	$	143.66		1.2	%	$	117.78	$	115.61		1.9	%		15.2	%
SpringHill Suites		17		78.2	%		77.0	%		1.5	%	$	121.57	$	120.42		1.0	%	$	95.01	$	92.71		2.5	%		6.7	%
Upscale Total		164		78.1	%		78.0	%		0.1	%	$	137.42	$	137.17		0.2	%	$	107.26	$	106.96		0.3	%		73.8	%

Upper Midscale
Fairfield Inn/Fairfield Inn & Suites		11		80.1	%		79.0	%		1.4	%	$	120.19	$	118.82		1.2	%	$	96.24	$	93.84		2.6	%		3.7	%
Hampton Inn/Hampton Inn & Suites		36		77.7	%		77.8	%		(0.1	)%	$	129.97	$	129.82		0.1	%	$	101.02	$	101.04		(0.0	)%		13.5	%
Home2 Suites		6		83.6	%		85.8	%		(2.6	)%	$	125.89	$	122.07		3.1	%	$	105.28	$	104.76		0.5	%		2.5	%
TownePlace Suites		12		77.2	%		77.3	%		(0.2	)%	$	105.51	$	101.35		4.1	%	$	81.41	$	78.39		3.9	%		3.2	%
Upper Midscale Total		65		78.6	%		78.5	%		0.0	%	$	124.09	$	122.78		1.1	%	$	97.49	$	96.42		1.1	%		22.9	%

Upper Upscale
Embassy Suites		2		86.3	%		81.1	%		6.4	%	$	169.75	$	169.87		(0.1	)%	$	146.46	$	137.69		6.4	%		1.3	%
Marriott		3		65.8	%		64.5	%		1.9	%	$	149.42	$	148.12		0.9	%	$	98.30	$	95.59		2.8	%		2.8	%
Renaissance		1		90.1	%		83.5	%		7.9	%	$	227.78	$	248.97		(8.5	)%	$	205.22	$	207.82		(1.2	)%		(0.8	)%
Upper Upscale Total		6		73.7	%		70.8	%		4.1	%	$	168.12	$	170.31		(1.3	)%	$	123.86	$	120.58		2.7	%		3.3	%

Total Portfolio		235		78.0	%		77.8	%		0.3	%	$	135.42	$	134.99		0.3	%	$	105.59	$	104.97		0.6	%		100.0	%

Note: Chain scale categorization is based on STR designation.

Page | 16

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Location

Three Months ended June 30

(Unaudited)

Location			Occupancy									ADR							RevPAR							% of Adjusted Hotel EBITDA
	# of Hotels		Q2 2017			Q2 2016			% Change			Q2 2017		Q2 2016		% Change			Q2 2017		Q2 2016		% Change			Q2 2017
STR Location
Airport		16		85.3	%		87.0	%		(1.9	)%	$	132.85	$	130.11		2.1	%	$	113.38	$	113.13		0.2	%		6.7	%
Interstate		8		77.7	%		77.4	%		0.3	%	$	113.55	$	113.65		(0.1	)%	$	88.20	$	88.02		0.2	%		2.5	%
Resort		9		86.7	%		81.3	%		6.7	%	$	142.53	$	138.71		2.8	%	$	123.56	$	112.74		9.6	%		5.0	%
Small Metro/Town		19		76.2	%		77.7	%		(2.0	)%	$	111.00	$	107.35		3.4	%	$	84.60	$	83.46		1.4	%		4.5	%
Suburban		148		80.8	%		81.4	%		(0.7	)%	$	133.02	$	133.36		(0.3	)%	$	107.53	$	108.56		(1.0	)%		57.5	%
Urban		35		83.6	%		84.2	%		(0.7	)%	$	165.04	$	165.42		(0.2	)%	$	137.91	$	139.22		(0.9	)%		23.8	%

Total Portfolio		235		81.5	%		81.9	%		(0.5	)%	$	137.53	$	137.08		0.3	%	$	112.08	$	112.27		(0.2	)%		100.0	%

Note: Location categorization is based on STR designation.

Apple Hospitality REIT, Inc.

Comparable Hotels Operating Metrics by Location

Six Months ended June 30

(Unaudited)

Location			Occupancy									ADR							RevPAR							% of Adjusted Hotel EBITDA
	# of Hotels		YTD 2017			YTD 2016			% Change			YTD 2017		YTD 2016		% Change			YTD 2017		YTD 2016		% Change			YTD 2017
STR Location
Airport		16		82.9	%		83.5	%		(0.8	)%	$	134.35	$	132.17		1.7	%	$	111.36	$	110.39		0.9	%		7.0	%
Interstate		8		72.2	%		72.5	%		(0.4	)%	$	111.63	$	112.57		(0.8	)%	$	80.65	$	81.63		(1.2	)%		2.4	%
Resort		9		82.5	%		79.3	%		4.1	%	$	144.09	$	140.88		2.3	%	$	118.94	$	111.69		6.5	%		5.1	%
Small Metro/Town		19		74.2	%		74.4	%		(0.3	)%	$	116.73	$	113.39		2.9	%	$	86.61	$	84.41		2.6	%		5.4	%
Suburban		148		77.5	%		77.2	%		0.4	%	$	131.31	$	132.07		(0.6	)%	$	101.71	$	101.94		(0.2	)%		58.3	%
Urban		35		79.1	%		79.4	%		(0.3	)%	$	157.07	$	155.42		1.1	%	$	124.28	$	123.35		0.8	%		21.8	%

Total Portfolio		235		78.0	%		77.8	%		0.3	%	$	135.42	$	134.99		0.3	%	$	105.59	$	104.97		0.6	%		100.0	%

Note: Location categorization is based on STR designation.