Apple Hospitality REIT (APLE) AI Stock Analysis

• Market Cap: $2.76B
• Dividend Yield: 8.29%
• Average Volume (3M): 2.97M
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.87
• Revenue Growth: 4.98%
• EPS Growth: -7.08%
• Country: US
• Employees: 65
• Sector: Real Estate
• Sector Strength: 70
• Industry: REIT - Hotel & Motel
• EPS (TTM): 0.13
• Shares Outstanding: 237,914,340
• 10 Day Avg. Volume: 3,458,993
• 30 Day Avg. Volume: 2,970,673
• PEG Ratio: 0.04
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.69
• Enterprise Value/Market Cap: 1.96
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 10.73
• Enterprise Value/Ebitda: 2.87
• 1Y Price Target: $12.50
• Price Target Upside: 7.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 72 Outperform
• Price Target: $13.00 ▲(12.26%Upside)

Apple Hospitality REIT's overall stock score is driven by its robust financial health and attractive valuation, providing a strong income potential for investors. While technical indicators suggest limited short-term momentum, strategic corporate events and an impressive dividend yield enhance the stock's appeal. Mixed earnings call sentiment and moderate economic challenges temper the outlook slightly.

Positive Factors

Financial Strength

APLE's margins are industry leading at 34% and it has one of the sector’s best balance sheets with leverage at 3.2x.

Portfolio Quality

APLE owns a high-quality and diverse select-service portfolio, which helps insulate it from market-specific weakness.

Negative Factors

Government Segment

APLE's government segment, which accounts for 5-6% of its mix, has been a relative weak spot amid softening government demand.

Lodging Demand

Lodging demand remains uneven and even as it stabilizes, APLE’s recent update was a bit worse than expected.

RevPAR Performance

APLE's April RevPAR decline was lower-than-expected and occupancy remained soft into May with year-over-year declines in six of the last eight weeks.

Apple Hospitality REIT Business Overview & Revenue Model

Company Description

Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust (REIT) that owns one of the largest and most diverse portfolios of upscale, rooms-focused hotels in the United States. Apple Hospitality's portfolio consists of 235 hotels with more than 30,000 guest rooms located in 87 markets throughout 34 states. Concentrated with industry-leading brands, the Company's portfolio consists of 104 Marriott-branded hotels, 126 Hilton-branded hotels, three Hyatt-branded hotels and two independent hotels.

How the Company Makes Money

Apple Hospitality REIT generates revenue primarily through the ownership and operation of its portfolio of hotels. The company makes money by earning income from its hotel properties, which includes room rentals, food and beverage sales, and other ancillary services offered at its hotels. Key revenue streams involve room occupancy and average daily rates (ADR), which are influenced by market demand and the strategic locations of their properties. Additionally, Apple Hospitality benefits from its affiliations with premium hotel brands, which help attract guests and increase occupancy rates. The company may also engage in selective acquisitions and dispositions to optimize its portfolio and enhance profitability.

Apple Hospitality REIT Financial Statement Overview

Summary

Apple Hospitality REIT demonstrates solid financial health with strong income growth and stable cash flows. The company has effectively managed its debt levels and improved profitability margins over the years. While there are concerns about revenue growth in the latest TTM period, the overall financial position remains robust and capable of sustaining potential market fluctuations.

Income Statement

The company shows strong revenue growth over the periods, with an impressive turnaround in net income since 2020. Gross profit margin and EBIT margin have improved significantly, reflecting effective cost management. However, the slight decline in total revenue in the TTM period compared to the previous annual period is a concern.

Balance Sheet

The balance sheet is stable with a declining debt-to-equity ratio, indicating improved leverage management. The equity ratio is strong, providing a solid cushion for liabilities. However, the total assets have remained fairly constant, suggesting limited asset growth.

Cash Flow

Cash flow metrics are strong with consistent operating cash flows and improving free cash flow, indicating efficient operational performance. The free cash flow to net income ratio is high, reflecting effective cash generation relative to profits. The variability in investing cash flow indicates potential strategic investments.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.43B	1.43B	1.34B	1.24B	933.87M	601.88M
	Gross Profit
502.43M	509.21M	483.77M	455.03M	319.71M	445.78M
	EBIT
271.55M	292.76M	247.48M	206.48M	87.04M	-107.80M
	EBITDA
463.27M	483.36M	430.72M	412.56M	271.51M	97.75M
	Net Income Common Stockholders
191.24M	214.06M	177.49M	144.81M	18.83M	-173.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.92M	10.25M	10.29M	4.08M	3.28M	5.56M
	Total Assets
4.95B	4.97B	4.94B	4.77B	4.79B	4.83B
	Total Debt
1.65B	1.58B	1.48B	1.48B	1.55B	1.70B
	Net Debt
1.63B	1.57B	1.47B	1.47B	1.55B	1.70B
	Total Liabilities
1.74B	1.70B	1.61B	1.59B	1.64B	1.80B
	Stockholders Equity
3.21B	3.27B	3.32B	3.18B	3.15B	3.03B
Cash Flow		Free Cash Flow
383.08M	325.01M	326.98M	309.07M	199.25M	-21.83M
	Operating Cash Flow
399.84M	405.35M	399.04M	368.45M	217.56M	26.73M
	Investing Cash Flow
-105.84M	-215.71M	-364.63M	-135.91M	-150.68M	-82.26M
	Financing Cash Flow
-278.48M	-189.19M	-34.31M	-228.97M	-61.30M	55.24M

Apple Hospitality REIT Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APLE, the sentiment is Negative. The current price of 11.58 is below the 20-day moving average (MA) of 11.61, below the 50-day MA of 11.62, and below the 200-day MA of 13.67, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 47.24 is Neutral, neither overbought nor oversold. The STOCH value of 30.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APLE.

Apple Hospitality REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APLE	72 Outperform	$2.76B	14.59	5.84%	8.29%	4.98%	-7.08%
PK	65 Neutral	$2.04B	17.18	3.46%	9.81%	-3.68%	35.35%
DRH	65 Neutral	$1.56B	38.22	3.22%	4.19%	3.73%	-44.49%
SHO	64 Neutral	$1.73B	89.97	1.66%	4.14%	-3.90%	-89.21%
PEB	64 Neutral	$1.13B	―	-0.33%	0.42%	2.18%	56.00%
RLJ	63 Neutral	$1.10B	27.61	2.92%	8.32%	2.82%	-8.08%
Sector *	61 Neutral	$2.84B	10.83	0.41%	9.90%	5.95%	-21.31%

Apple Hospitality REIT Corporate Events

Apple Hospitality REIT Acquires Homewood Suites Tampa-Brandon

On June 11, 2025, Apple Hospitality REIT announced the acquisition of the 126-room Homewood Suites by Hilton Tampa-Brandon for $18.8 million. This strategic acquisition, located near their existing Embassy Suites, is expected to enhance market positioning and operational synergies, reflecting the company’s ability to deploy capital effectively and maximize shareholder returns.

The most recent analyst rating on (APLE) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Apple Hospitality REIT stock, see the APLE Stock Forecast page.

Apple Hospitality REIT Releases Updated Investor Presentation

On May 30, 2025, Apple Hospitality REIT released an updated investor presentation on its website, detailing operating statistics for April and May 2025. The presentation highlights the company’s strong performance metrics, including a first-quarter 2025 Comparable Hotels RevPAR of $111, occupancy of 71%, and ADR of $157, despite various challenges affecting hotel performance. This update underscores Apple Hospitality’s strategic focus on upscale, rooms-focused hotels and its ability to maintain robust financial health and shareholder value through effective management and market positioning.

The most recent analyst rating on (APLE) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Apple Hospitality REIT stock, see the APLE Stock Forecast page.

Apple Hospitality REIT Extends Share Repurchase Program

On May 19, 2025, Apple Hospitality REIT, Inc. held its Annual Meeting where shareholders elected nine directors, ratified KPMG LLP as the accounting firm for 2025, approved executive compensation, and endorsed the Employee Stock Purchase Plan. Additionally, the Board extended the share repurchase program until July 2026, allowing for up to $262.6 million in repurchases, reflecting a strategic move to enhance shareholder value.

The most recent analyst rating on (APLE) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Apple Hospitality REIT stock, see the APLE Stock Forecast page.

Apple Hospitality REIT Updates Investor Presentation

On May 12, 2025, Apple Hospitality REIT released an updated investor presentation on its website, detailing operating statistics for April and May 2025. The company highlighted its strong financial performance, including a first quarter 2025 Comparable Hotels RevPAR of $111, occupancy of 71%, and ADR of $157, despite various challenges affecting hotel performance. The announcement underscores Apple Hospitality’s robust market positioning and commitment to shareholder value through strategic acquisitions and a flexible balance sheet.

The most recent analyst rating on (APLE) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Apple Hospitality REIT stock, see the APLE Stock Forecast page.

Apple Hospitality REIT Releases April 2025 Investor Update

On May 5, 2025, Apple Hospitality REIT released an updated investor presentation on its website, providing operating statistics for April 2025. The presentation highlighted the company’s strong performance, including a first-quarter 2025 RevPAR of $111, occupancy of 71%, and an ADR of $157, despite various challenges impacting hotel performance. The company continues to focus on strategic acquisitions and maintaining a strong balance sheet, positioning itself well in the competitive real estate investment market.

Apple Hospitality REIT Releases April 2025 Investor Update

On April 7, 2025, Apple Hospitality REIT released an updated investor presentation on its website, detailing operational statistics for March 2025. The company reported a slight decline in RevPAR for the first quarter of 2025 compared to the same period in 2024, attributed to weather-related travel disruptions in January and February. The presentation highlights Apple Hospitality’s continued focus on strategic acquisitions, efficient operations, and maintaining a strong financial position, which are key to its industry positioning and stakeholder interests.