Apple Hospitality Reit Inc's Comment on Supply Chain
The Company depends on suppliers, distributors, contractors, and other external business partners for certain functions and services supporting key operations. These third parties are exposed to risks including cybersecurity threats, privacy violations, and business interruptions, which could materially impact the Company if incidents occur. The Company has established processes and maintains cybersecurity insurance; however, full protection and adequate coverage cannot be guaranteed. Insurance policies held by the Company or third-party managers cover commercial general liability, property, business interruption, cyber threats, and other risks across all hotels. Coverage availability, rates, and insurability for catastrophic events such as earthquakes, hurricanes, wildfires, or terrorism remain uncertain. Policies may include high deductibles, premiums, and exclusions for environmental hazards. In the event of substantial property loss, insurance may not cover the full market value or replacement costs, potentially resulting in capital loss and reduced future revenue, while financial obligations such as mortgage debt may persist.
Apple Hospitality Reit Inc's Comment on Supply Chain
The Company depends on suppliers, distributors, contractors, and other external business partners for certain functions and services supporting key operations. These third parties are exposed to risks including cybersecurity threats, privacy violations, and business interruptions, which could materially impact the Company if incidents occur. The Company has established processes and maintains cybersecurity insurance; however, full protection and adequate coverage cannot be guaranteed. Insurance policies held by the Company or third-party managers cover commercial general liability, property, business interruption, cyber threats, and other risks across all hotels. Coverage availability, rates, and insurability for catastrophic events such as earthquakes, hurricanes, wildfires, or terrorism remain uncertain. Policies may include high deductibles, premiums, and exclusions for environmental hazards. In the event of substantial property loss, insurance may not cover the full market value or replacement costs, potentially resulting in capital loss and reduced future revenue, while financial obligations such as mortgage debt may persist.
Sources:
Apple Hospitality Reit Inc 's official press releases and regulatory filings; CSIMarket.com's supply-chain research; and the financial filings and press releases of other companies cited in this report.
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