Apple Hospitality REIT, Inc.

Howdy Reed Second Quarter Earnings Call. All participants will be in listen-only mode. Should you need assistance, please send to a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To try your question, please press star, then two. Please note, this event is being recorded. I now turn the conference over to Kelly Clark, Vice President of Investor Relations. Please go ahead.

Thank you and good morning. Welcome to Apple Hospitality REIT Second Quarter 2025 Earnings Call. Today's call will be based on the earnings release in Form 10Q, which we distributed and filed yesterday afternoon. Before we begin, please note that today's call may include forward-looking statements as defined by federal securities laws. These forward-looking statements are based on current views and assumptions, and as a result, are subject to numerous risks, uncertainties, and the outcome of future events that could cause actual results, performance, or achievements to materially differ from those expressed, projected, or implied. Any such forward-looking statements are qualified by the risk factors described in our filings with the SEC, including in our 2024 annual report on Form 10K, and speak only as of today. The company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law. In addition, non-GAAP measures of performance will be discussed during this call. Reconciliation of those measures to GAAP measures and definitions of certain items referred to in our remarks are included in yesterday's earnings release and other filings with the SEC. For a copy of the earnings release or additional information about the company, please visit applehospitalityreit.com. This morning, Justin Knight, our Chief Executive Officer, and Liz Perkins, our Chief Financial Officer, will provide an overview of our results for the second quarter of 2025 and an operational outlook for the rest of the year. Following the overview, we will open the call for Q&A. At this time, it is my pleasure to turn the call over to Justin.

Good morning, and thank you for joining us today for our second quarter 2025 earnings call. Fundamentals for our portfolio improved sequentially as we moved through the quarter, with red part declines moderating each month and preliminary results for July showing red part growth year over year. As anticipated, April was the most challenging month. As heightened economic uncertainty, a pullback in government travel, the shift in timing of the Easter holiday and the elongated spring break period all weighed on overall performance. During the quarter, we worked with our management companies to further optimize the mix of business at our hotels, and we're able to strengthen market share broadly across our portfolio, as well as in those markets more heavily impacted by demand shifts related to government travel. Our teams have demonstrated an exceptional ability to swiftly adapt to changing demand trends within our markets, in many cases, layering on additional group business at attractive rates. Although variable expense growth is generally moderated, higher fixed costs and lower than expected top line growth impacted our bottom line performance during the quarter. Though down slightly, our portfolio continues to produce industry-leading margins with comparable hotels' EBITDA margin of .4% for the quarter. Our hotels operate efficiently and produce strong cash flow while simultaneously providing guests traveling for both business and leisure with a compelling value proposition. While broad economic uncertainty weighed on year over year growth and fueled capital market volatility during the quarter, our travel demand for our portfolio remained resilient, further reinforcing the merits of our underlying strategy. The fundamentals of our business are strong,