Apple Hospitality REIT (APLE)

Risks

• The Company is subject to various risks which are common to the hotel industry on a national, regional and local market basis that are beyond its control and could adversely affect its business.
• The Company is affected by restrictions in, and compliance with, its franchise and license agreements.
• Substantially all of the Company’s hotels operate under Marriott or Hilton brands; therefore, the Company is subject to risks associated with concentrating its portfolio in these brand families.
• The Company is dependent on third-party hotel managers to operate its hotels and could be adversely affected if such management companies do not manage the hotels successfully.
• The growing use of non-franchisor lodging distribution channels could adversely affect the Company’s business and profitability.
• Renovations and capital improvements at the Company’s existing hotels or new hotel developments may reduce the Company’s profitability.
• Certain hotels are subject to ground leases that may affect the Company’s ability to use the hotel or restrict its ability to sell the hotel.
• The Company may not be able to complete hotel dispositions when and as anticipated.
• Real estate impairment losses may adversely affect the Company’s financial condition and results of operations.
• The Company’s failure to identify and complete accretive acquisitions may adversely affect the profitability of the Company.
• The phase-out, replacement, or unavailability of LIBOR as the reference interest rate under the Company’s variable-rate debt and hedging arrangements could have a material adverse effect on the business, financial condition and results of operations of the Company, and the replacement rate may differ from LIBOR and between the loan and hedge markets.
• Compliance with financial and other covenants in the Company’s existing or future debt agreements may reduce operational flexibility and create default risk.
• Technology is used in operations, and any material failure, inadequacy, interruption or security failure of that technology from cyber-attacks or other events could harm the Company’s business.
• Potential losses not covered by insurance may adversely affect the Company’s financial condition.
• The Company faces possible risks associated with the physical effects of, and laws and regulations related to, climate change.
• The Company could incur significant, material costs related to government regulation and litigation with respect to environmental matters, which could have a material adverse effect on the Company.
• The Company may incur significant costs complying with various regulatory requirements, which could materially and adversely affect the Company.
• The Company’s future issuances of preferred shares or debt securities may adversely affect the voting power or ownership interest of the holders of common shares or may limit the ability of a third party to acquire control of the Company.
• The Company may be subject to adverse legislative or regulatory tax changes.
• The Company may change its distribution policy or may not have funds available to make distributions to shareholders.
• Future offerings or the perception that future offerings could occur may adversely affect the market price of the Company’s common shares and future offerings may be dilutive to existing shareholders.