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Ari Klein Maintains Hold Rating on Apple Hospitality REIT Amid Revised Guidance and Rising Costs

Ari Klein Maintains Hold Rating on Apple Hospitality REIT Amid Revised Guidance and Rising Costs

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.

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