Apple Hospitality REIT (APLE) AI Stock Analysis

• Market Cap: $2.78B
• Dividend Yield: 8.6%
• Average Volume (3M): 3.16M
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.80
• Revenue Growth: 0.57%
• EPS Growth: -13.58%
• Country: US
• Employees: 65
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Hotel & Motel
• EPS (TTM): 0.21
• Shares Outstanding: 236,575,700
• 10 Day Avg. Volume: 3,209,494
• 30 Day Avg. Volume: 3,157,573
• PEG Ratio: 1.11
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 2.59
• P/FCF Ratio: 11.39
• Enterprise Value/Market Cap: 1.58
• Enterprise Value/Revenue: 3.09
• Enterprise Value/Gross Profit: 6.92
• Enterprise Value/Ebitda: 10.22
• 1Y Price Target: $12.83
• Price Target Upside: 10.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $12.00 ▲(3.81% Upside)

Apple Hospitality REIT's overall stock score reflects a mixed financial performance with stable profitability but declining revenue and cash flow concerns. The technical analysis indicates bearish momentum, while the valuation is attractive due to a high dividend yield. The earnings call highlighted strategic initiatives but also noted challenges from revenue declines and economic uncertainty.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage reduces financial risk and enhances the company's ability to invest in growth opportunities.

Strategic Asset Sales

Strategic asset sales and share repurchases indicate effective capital allocation, potentially enhancing shareholder value and financial flexibility.

Efficient Cost Management

Efficient cost management supports margin sustainability and profitability, allowing the company to better navigate economic uncertainties.

Negative Factors

Revenue Decline

A decline in revenue indicates challenges in maintaining growth, which could impact long-term profitability and market position.

RevPAR and Occupancy Declines

Decreases in RevPAR and occupancy suggest weakening demand, potentially affecting revenue generation and competitive positioning.

Macroeconomic Headwinds

Macroeconomic headwinds and reduced government travel can dampen growth prospects, impacting the company's ability to achieve revenue targets.

Apple Hospitality REIT Business Overview & Revenue Model

Company Description

Apple Hospitality REIT, Inc. is a real estate investment trust (REIT) that specializes in owning and managing a diversified portfolio of hotels primarily in the upscale and select-service segments. The company operates a variety of well-known hotel brands across the United States, providing high-quality accommodations and services to both business and leisure travelers. With a focus on enhancing shareholder value, Apple Hospitality invests in properties located in key markets that demonstrate strong demand for hotel accommodations.

How the Company Makes Money

Apple Hospitality REIT generates revenue primarily through the rental income derived from its hotel properties. This income is sourced from long-term leases with various hotel brands that operate the properties under franchise agreements. Additionally, the company benefits from management fees, which are collected from third-party hotel operators hired to manage the day-to-day operations of its properties. The company also capitalizes on revenue growth through strategic acquisitions of high-performing hotels and by optimizing operational efficiencies within its existing portfolio. Factors contributing to its earnings include favorable market conditions for travel and tourism, the strength of its brand partnerships, and effective cost management strategies.

Apple Hospitality REIT Financial Statement Overview

Summary

Apple Hospitality REIT shows stable profitability margins despite declining revenue. The balance sheet is strong with low leverage and a solid equity base, indicating financial stability. However, the cash flow statement highlights concerns with declining free cash flow growth, which could impact future liquidity.

Income Statement

The income statement shows a mixed performance. The TTM data indicates a decline in revenue growth at -34.9%, which is concerning. However, the company maintains a reasonable gross profit margin of 44.6% and a net profit margin of 12.4%. The EBIT and EBITDA margins are also stable at 12.7% and 28.7%, respectively. Despite the revenue decline, profitability margins remain relatively healthy, suggesting effective cost management.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.034, indicating low leverage. The return on equity is modest at 5.5%, showing moderate profitability. The equity ratio stands at 64.9%, suggesting a strong equity base relative to total assets. Overall, the balance sheet demonstrates financial stability with low risk from debt.

Cash Flow

Cash flow analysis reveals challenges with a significant decline in free cash flow growth at -142.1% TTM. However, the operating cash flow to net income ratio is strong at 3.41, indicating good cash generation relative to net income. The free cash flow to net income ratio is also healthy at 0.95. While cash flow generation is robust, the decline in free cash flow growth is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.42B	1.43B	1.34B	1.24B	933.87M	601.88M
Gross Profit	633.49M	509.21M	483.77M	455.03M	319.71M	121.36M
EBITDA	428.72M	483.36M	430.72M	388.18M	271.51M	97.75M
Net Income	175.57M	214.06M	177.49M	144.81M	18.83M	-173.21M
Balance Sheet
Total Assets	4.91B	4.97B	4.94B	4.77B	4.79B	4.83B
Cash, Cash Equivalents and Short-Term Investments	50.29M	10.25M	10.29M	4.08M	3.28M	5.56M
Total Debt	1.73B	1.58B	1.48B	1.48B	1.55B	1.70B
Total Liabilities	1.72B	1.70B	1.61B	1.59B	1.64B	1.80B
Stockholders Equity	3.19B	3.27B	3.32B	3.18B	3.15B	3.03B
Cash Flow
Free Cash Flow	358.82M	325.01M	326.98M	309.07M	199.25M	-21.83M
Operating Cash Flow	379.58M	405.35M	399.04M	368.45M	217.56M	26.73M
Investing Cash Flow	-43.94M	-215.71M	-364.63M	-135.91M	-150.68M	-82.26M
Financing Cash Flow	-289.01M	-189.19M	-34.31M	-228.97M	-61.30M	55.24M

Apple Hospitality REIT Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 11.56 is above the 20-day moving average (MA) of 11.53, below the 50-day MA of 11.76, and below the 200-day MA of 12.05, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 48.61 is Neutral, neither overbought nor oversold. The STOCH value of 65.33 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
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
XHR	65 Neutral	$1.33B	25.11	4.58%	3.84%	4.29%	141.01%
DRH	64 Neutral	$1.84B	34.37	3.98%	5.24%	0.95%	-8.40%
APLE	63 Neutral	$2.78B	15.94	5.41%	8.60%	0.57%	-13.58%
SHO	63 Neutral	$1.80B	1,890.00	0.88%	3.88%	3.04%	-98.77%
PEB	52 Neutral	$1.22B	-17.90	-3.74%	0.36%	0.99%	-360.58%
PK	52 Neutral	$2.09B	―	-0.36%	13.05%	-3.57%	-104.55%

Apple Hospitality REIT Corporate Events

Apple Hospitality REIT Updates Investor Presentation

On September 8, 2025, Apple Hospitality REIT released an updated investor presentation, highlighting its performance and strategic initiatives. The presentation revealed that the company achieved a second quarter 2025 Comparable Hotels RevPAR of $129, occupancy of 79%, and ADR of $164, despite macroeconomic uncertainties. The company continues to focus on its proven investment strategy, emphasizing upscale, rooms-focused hotels with broad geographic diversification and a strong balance sheet, which positions it well to pursue accretive opportunities and maintain competitiveness.

The most recent analyst rating on (APLE) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Apple Hospitality REIT stock, see the APLE Stock Forecast page.

Apple Hospitality REIT Earnings Call: Mixed Sentiment Amid Challenges

The recent earnings call for Apple Hospitality REIT Inc. presented a mixed sentiment, highlighting both strategic strengths and ongoing challenges. The company showcased improvements in RevPAR trends, strong portfolio performance, and effective capital allocation. However, these positives were counterbalanced by decreased revenue, macroeconomic uncertainty, and a lowered guidance. While there are promising indicators for future growth, the current challenges temper the positive achievements.

Apple Hospitality REIT Releases Updated Investor Presentation

On August 11, 2025, Apple Hospitality REIT released an updated investor presentation on its website, detailing operating statistics for July and August 2025. The presentation highlights the company’s strong financial performance, including a second quarter 2025 Comparable Hotels RevPAR of $129, occupancy of 79%, and ADR of $164, despite macroeconomic uncertainties. This update underscores Apple Hospitality’s robust market positioning and operational resilience, which are crucial for stakeholders amid fluctuating economic conditions.

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 Reports Q2 2025 Earnings

Apple Hospitality REIT, Inc. is a publicly traded real estate investment trust that owns a diverse portfolio of upscale, rooms-focused hotels across the United States, with a focus on Marriott, Hilton, and Hyatt brands.