Unsecured credit

Apple Hospitality REIT successfully grows and expands its main unsecured credit facility, improving the strength and flexibility of its balance sheet

RICHMOND, Va., July 27, 2022–(BUSINESS WIRE)–Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or “Apple Hospitality”) today announced that it has successfully refinanced its primary unsecured credit facility, strengthening the strength and flexibility of its balance sheet. The Company entered into an amendment and restatement of its existing $850 million unsecured credit facility (the “Credit Facility”) on July 25, 2022, bringing the total credit facility to approximately $1.2 billion and extending the Company’s staggered maturity schedule while obtaining better pricing terms across the credit facility.

“We are excited to further improve the financial strength and flexibility of our balance sheet and strengthen our already strong liquidity position by refinancing our primary credit facility,” commented Liz Perkins, senior vice president and chief financial officer, Apple. Hospitality REIT. “We greatly appreciate the support of our lenders and their continued confidence in our strategy and the underlying fundamentals of our business. Through the amendment and restatement of the credit agreement, we have increased our revolving credit facility and our term loans, providing the company with greater access to cash for strategic growth and the opportunity to further reduce our already conservative secured debt exposure.With the increased size, extended maturities and more attractive pricing of the facility modified, the Company is incredibly well positioned to enhance shareholder value in any macroeconomic environment.

The credit facility includes a $275 million term loan maturing July 25, 2027; a term loan of up to $300 million with a maturity date of January 31, 2028, of which $150 million is available through a deferred drawdown option up to 180 days from closing; and a $650 million revolving credit facility with an original maturity date of July 25, 2026, which can be extended for up to one year subject to certain conditions. The updates to the total credit facility provide $150 million of additional capacity under the term loans, $225 million of additional capacity under the revolving credit facility, an extension of the maturities of each of the loans under full facility and better pricing terms. The credit agreement includes an accordion clause whereby the total amount of the credit facility can be increased from approximately $1.2 billion to $1.5 billion.

The terms of the amended and restated credit agreement are generally similar to the Company’s previous $850 million credit agreement. The amendment includes: a transition of the reference rate from LIBOR to SOFR; a decrease in the margin ranging from 1.35% to 2.25% compared to an adjusted SOFR rate, depending on the Company’s leverage ratio, as calculated according to the terms of the credit agreement; and the same unused fees on the revolving credit facility at an annual rate of 0.20% or 0.25%, depending on usage.

At closing, the Company borrowed $475 million under the term loans and used the proceeds to repay the $425 million outstanding under the term loans under the previous credit facility and the $50 million outstanding under the current revolving credit facility.

The credit facility was arranged by BofA Securities, Inc., KeyBanc Capital Markets, Wells Fargo Securities, LLC and US Bank National Association, as lead arrangers and joint bookrunners.

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 and most diversified portfolios of upscale, room-based hotel properties. United States. Apple Hospitality’s portfolio consists of 219 hotels with more than 28,700 rooms located in 86 markets across 36 states. A concentrate of industry-leading brands, the company’s portfolio consists of 94 Marriott-branded hotels, 119 Hilton-branded hotels, four Hyatt-branded hotels and two independent hotels. For more information, visit www.applehospitalityreit.com.

Disclaimer of Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are generally identified by the use of statements that include expressions 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 results. Such statements involve known risks. and unknowns, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Currently, one of the most important factors that could cause actual results to differ materially from the company’s forward-looking statements continues to be the adverse effect of COVID-19, including resurgences and variations, on the company’s activities, financial performance and condition, its operations, results and cash flows, the real estate market and the hotel industry in particular, and the global economy and financial markets in general. The significance, extent and duration of the continued impacts caused by the COVID-19 pandemic on the Company will depend on future developments, which are highly uncertain and cannot be predicted with certainty at this time, including the extent, severity and duration of the pandemic. , the extent and effectiveness of the measures taken to contain the pandemic or mitigate its impact, the effectiveness, acceptance and availability of vaccines, the duration of associated immunity and the effectiveness of vaccines against variants of COVID-19, the potential for additional hotel closures/consolidations which may be mandatory or desirable, whether based on increasing COVID-19 cases, new variants or other factors, slowdown or potential cancellation of “reopenings” in some states, and the direct and indirect economic effects of the pandemic and containment measures, among others. In addition, investors are urged to interpret many of the risks identified in the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 as being heightened due to numerous and ongoing adverse effects of COVID-19. Additional factors include, but are not limited to, the Company’s ability to effectively acquire and sell properties and redeploy proceeds; the expected timing and frequency of distributions to shareholders; the Company’s ability to fund its capital obligations; the Company’s ability to successfully integrate ongoing operations and implement its operating strategy; changes in general political, economic and competitive conditions and specific market conditions; reduced business and leisure travel due to travel-related health concerns, including the COVID-19 pandemic or an increase in cases of COVID-19 or any other infectious or contagious disease in or around the United States abroad; adverse changes in real estate and real estate capital markets; funding risks; changes in interest rates; litigation risks; regulatory proceedings or investigations; and changes in applicable laws or regulations or interpretations of applicable laws and regulations that affect the Company’s business, assets or classification as a REIT. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, each of these assumptions may prove to be incorrect and, accordingly, there can be no assurance that such statements included in this press release will prove to be accurate. In light of the material uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be taken as a representation by the Company or any other person that the results or conditions described in such statements or the objectives and Company plans will be achieved. Furthermore, the qualification of the Company as a REIT involves the application of very technical and complex provisions of the Tax Code of 1986, as amended. Readers should carefully review the risk factors described in the company’s filings with the Securities and Exchange Commission, including, but not limited to, those discussed in the section entitled “Risk Factors” in the annual report. of the company on Form 10-K for the fiscal year ending December. 31, 2021. Any forward-looking statements made by the Company speak only as of the date of this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements or cautionary statements, as a result of new information, future events or otherwise, except as required by law.

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

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Apple Hospitality REIT, Inc.
Kelly Clarke, Vice President, Investor Relations
[email protected]