Analyst Ari Klein of BMO Capital maintained a Hold rating on Apple Hospitality REIT, retaining the price target of $12.00.
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Ari Klein’s rating is based on a combination of factors, including the recent performance and future outlook of Apple Hospitality REIT. The company’s Q2 EBITDA and FFO were consistent with expectations, and while RevPAR showed a decline of 1.7%, there was a positive trend with improvement each month and a 1% growth in July. However, the company has adjusted its 2025 guidance, lowering expectations for RevPAR and EBITDA, which now suggests a flat performance in the second half of 2025 compared to previous growth expectations.
Despite some positive revenue figures, such as a slight outperformance in rooms revenue and overall revenue surpassing consensus, the increase in hotel operating expenses counterbalanced these gains. The revised guidance, which includes a reduction in expected EBITDA and RevPAR, reflects a more cautious outlook. This tempered forecast, combined with the higher operational costs, has led Ari Klein to maintain a Hold rating on the stock, indicating a neutral stance given the current market conditions and uncertainties.
According to TipRanks, Klein is a 4-star analyst with an average return of 4.0% and a 53.30% success rate. Klein covers the Real Estate sector, focusing on stocks such as Equinix, Pebblebrook Hotel, and Ryman.