Apple Hospitality REIT (APLE) holds 217 hotels with 29,583 guest rooms across 37 states as of March 31, 2026. Under the liquidation lens, the recovery posture is negative and materially so. MFFAIS reports a cash liquidation value of approximately -$1.67 billion, consistent with the structural arithmetic here: gross real estate at cost of $6.77 billion carries accumulated depreciation of $2.01 billion, yielding a book net of $4.76 billion. Applying a 50-70% PP&E haircut to that gross cost basis (hospitality real estate trades at significant discounts to replacement cost in a forced-sale scenario, particularly for mid-scale select-service hotels) produces a liquidation asset value in the range of $3.4-4.7 billion at gross before netting liabilities. Total liabilities at face value are $1.77 billion, dominated by $1.57 billion of total debt face value ($182.2 million secured mortgage, $1.29 billion unsecured facilities). The finance ground lease liability of $110.9 million sits senior to equity in liquidation and does not extinguish. Other assets of $43 million and restricted cash of $12.9 million recover at near-face; cash of $7.8 million recovers 100%. Intangibles embedded in OtherAssets receive 0% recovery. The negative equity recovery is driven primarily by the leverage stack against the PP&E haircut. Material changes since the prior 10-K (December 31, 2025): gross PP&E increased to $6.77 billion from approximately $6.76 billion (prior 10-K reported $6.76 billion at year-end 2025), reflecting $27.5 million in Q1 2026 capital expenditures partially offset by asset movements. One hotel (Rochester, MN Hampton, 124 rooms) was classified held for sale at March 31, 2026 and sold in April 2026 for $8.7 million gross. Debt composition is broadly unchanged QoQ; revolving credit facility draw increased to $89.1 million. Near-term maturity risk is elevated: $292.1 million of principal matures April 1-December 31, 2026, including a $19.5 million mortgage (Q2 2026), a $51.0 million mortgage (Q4 2026), the $89.1 million revolver balance, and a $130 million term loan, both revolver and term loan maturing July 25, 2026. The $143.7 million Las Vegas dual-brand development commitment and a $65.5 million Anchorage purchase contract (with $2.0 million deposit paid) represent off-balance-sheet capital commitments that would constitute senior claims on cash in a wind-down. The filing does not separately XBRL-tag the Las Vegas development commitment or the Anchorage purchase obligation; these are disclosed only in MD&A narrative. Covenant compliance is current as of March 31, 2026.
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