Apple Hospitality REIT, Inc. (NYSE: APLE) announced that it has withdrawn its full year 2020 outlook provided on February 24, 2020, due to recent cancellations and corporate travel policy restrictions related to concerns surrounding the novel coronavirus (COVID-19).
These developments have led to material declines in anticipated revenue for the Company for the month of March 2020 and into the second quarter of 2020.
“With growing concerns related to COVID-19, we have seen a meaningful rise in cancellations and a reduced pace of new reservations, and at this time, we believe we are unlikely to achieve our full year 2020 outlook,” said Justin Knight, President and Chief Executive Officer of Apple Hospitality. “With the rapidly evolving environment, our normal short booking window, and uncertainty regarding the duration of the COVID-19 outbreak, we do not expect to issue new guidance until operating fundamentals begin to stabilize. We are deeply committed to the overall health and safety of all hotel associates and guests and will continue to work closely with our management companies to ensure appropriate measures are in place as the situation evolves. We have successfully managed through other abrupt changes in demand during our twenty-year history in the lodging industry, and we will utilize that experience, as well as the outstanding leadership and expertise of our management companies, to share best practices across our portfolio and thoughtfully adapt operations to mitigate revenue declines and preserve operating margins. Given the size and geographic diversification of our portfolio of rooms-focused hotels, our strong balance sheet, and our prudent capital allocation strategy, we believe we are well positioned to navigate this challenge and enhance long-term value for our shareholders.”
Apple Hospitality REIT plans to provide more information during its first quarter earnings call based on details available at that time.
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