Apple Hospitality REIT (APLE) AI Stock Analysis

• Market Cap: $2.86B
• Dividend Yield: 8.3%
• Average Volume (3M): 2.31M
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.77
• Revenue Growth: 0.57%
• EPS Growth: -13.58%
• Country: US
• Employees: 65
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Hotel & Motel
• EPS (TTM): 0.13
• Shares Outstanding: 235,658,810
• 10 Day Avg. Volume: 2,011,026
• 30 Day Avg. Volume: 2,312,925
• PEG Ratio: -0.95
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 2.00
• P/FCF Ratio: 7.61
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 3.28
• Enterprise Value/Gross Profit: 8.76
• Enterprise Value/Ebitda: 10.76
• 1Y Price Target: $13.00
• Price Target Upside: 6.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.67
• Revenue Forecast (FY): $1.42B

• Rating: 67 Neutral
• Price Target: $13.00 ▲(6.12% Upside)
• Action: Reiterated Date: 02/24/26
• Date: Action: Reiterated 02/24/26

The score is driven primarily by solid underlying financial quality—especially consistent positive free cash flow—balanced against recent revenue/margin pressure. Valuation is supported by the high dividend yield, while technicals indicate only modest upward bias. The latest earnings call reinforces a cautious near-term setup with flat RevPAR guidance and cost headwinds, partially offset by capital allocation discipline and liquidity.

Positive Factors

Cash generation quality

Consistent positive operating cash flow and free cash flow from 2021–2025 (FCF to net income ~0.80–1.00) indicates durable cash generation. This supports ongoing distributions, buybacks and selective reinvestment, providing financial resilience through lodging cycles and funding flexibility for strategy execution.

Diversified, supply-protected portfolio

A geographically diversified portfolio across 84 markets with the majority of hotels supply-protected reduces idiosyncratic risk and supports steady occupancy/ADR recovery over time. Broad brand affiliation and 207 unencumbered hotels also enhance strategic optionality for dispositions or financing.

Disciplined capital allocation

Management has actively rebalanced portfolio via dispositions and opportunistic buybacks, redeploying proceeds into higher-yield acquisitions and 1031 exchanges. This disciplined approach improves portfolio yield, returns on invested capital and can accelerate deleveraging when market conditions permit.

Negative Factors

RevPAR and revenue weakness

Sustained RevPAR and revenue declines materially pressure EBITDA and cash flow in a cyclical lodging business. Given management's flat RevPAR guidance for 2026, top-line softness may persist several quarters, limiting margin recovery and constraining cash available for growth or higher distributions.

Margin compression and rising fixed costs

An ~8.6% decline in adjusted hotel EBITDA together with ~7% growth in fixed expenses indicates structural margin pressure. If fixed-cost baselines remain elevated, earnings volatility will be amplified during demand downdrafts, weakening cash flow reliability and raising break-even thresholds for some assets.

Concentration risks in demand mix and markets

A material pullback in government and negotiated business (government nights down ~12%) and market-specific RevPAR declines increase downside sensitivity. Exposure to convention, international inbound and government segments can prolong recovery in certain markets and depress midweek occupancy and ADR.

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 leasing of its hotel properties and the operation of its hotels. The company earns income from room rentals, food and beverage sales, and other ancillary services offered to guests. Its revenue model is based on the occupancy rates of its hotels and the average daily rates (ADR) charged for rooms. Additionally, Apple Hospitality benefits from economies of scale through its portfolio of properties, allowing for more efficient operations and cost management. The company also has partnerships with reputable hotel brands that enhance its market presence and attract a steady flow of guests. Overall, the combination of strategic property acquisitions, brand partnerships, and operational efficiency contributes significantly to Apple Hospitality's earnings.

Apple Hospitality REIT Financial Statement Overview

Summary

Cash generation is a clear strength (positive operating cash flow and free cash flow in 2021–2025, with FCF generally tracking close to net income). Balance sheet metrics look moderate-to-manageable historically with a potentially meaningful 2025 deleveraging, but the latest period shows notable revenue decline and some margin compression, which tempers the score.

Income Statement

Profitability is solid for a hotel REIT, with net margins generally in the low-to-mid teens in 2022–2025 and a sharp recovery from 2020’s loss. However, growth has turned choppy: revenue fell meaningfully in 2025 (down ~46.5% year over year) after steady gains in 2021–2024, and 2025 EBITDA margin also compressed versus 2024. Overall: good profitability profile, but the latest year shows clear top-line and margin pressure.

Balance Sheet

Leverage looks moderate-to-manageable in most years (debt-to-equity roughly ~0.45–0.56 from 2020–2024) and equity remains sizable versus total assets. 2025 shows an unusually low reported debt-to-equity (~0.04), implying a major deleveraging or data volatility; if accurate, it materially strengthens the credit profile. The main watch-out is that prior-year leverage was meaningful for a cyclical lodging business, so earnings softness can still matter even with improved balance sheet metrics.

Cash Flow

Cash generation is a relative strength: operating cash flow is consistently positive from 2021–2025 and free cash flow is positive in 2021–2025 (after negative in 2020). Cash flow also generally exceeds net income (free cash flow to net income ~0.80–1.00 in 2022–2025), supporting earnings quality. The key weakness is volatility—2024 free cash flow dipped slightly year over year, and the business has shown sensitivity in down cycles (2020).

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.41B	1.43B	1.34B	1.24B	933.87M
Gross Profit	90.08M	509.21M	483.77M	455.03M	319.71M
EBITDA	458.45M	483.36M	430.72M	388.18M	271.51M
Net Income	175.36M	214.06M	177.49M	144.81M	18.83M
Balance Sheet
Total Assets	4.90B	4.97B	4.94B	4.77B	4.79B
Cash, Cash Equivalents and Short-Term Investments	39.42M	10.25M	10.29M	4.08M	3.28M
Total Debt	1.77B	1.58B	1.48B	1.48B	1.55B
Total Liabilities	1.75B	1.70B	1.61B	1.59B	1.64B
Stockholders Equity	3.15B	3.27B	3.32B	3.18B	3.15B
Cash Flow
Free Cash Flow	370.22M	325.01M	326.98M	309.07M	199.25M
Operating Cash Flow	370.22M	405.35M	399.04M	368.45M	217.56M
Investing Cash Flow	-135.38M	-215.71M	-364.63M	-135.91M	-150.68M
Financing Cash Flow	-239.49M	-189.19M	-34.31M	-228.97M	-61.30M

Apple Hospitality REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 12.25 is above the 20-day moving average (MA) of 12.09, above the 50-day MA of 12.09, and above the 200-day MA of 11.67, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 53.49 is Neutral, neither overbought nor oversold. The STOCH value of 43.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APLE.

Apple Hospitality REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APLE	67 Neutral	$2.86B	16.47	5.47%	8.30%	0.57%	-13.58%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
DRH	65 Neutral	$2.05B	38.39	3.98%	5.13%	0.95%	-8.40%
PK	63 Neutral	$2.27B	-7.90	-8.38%	13.10%	-3.57%	-104.55%
XHR	62 Neutral	$1.49B	24.37	4.58%	3.71%	4.29%	141.01%
PEB	61 Neutral	$1.38B	-10.33	-3.74%	0.34%	0.99%	-360.58%
SHO	57 Neutral	$1.76B	1,006.52	0.88%	3.98%	3.04%	-98.77%

Apple Hospitality REIT Corporate Events

Apple Hospitality REIT Updates Federal Tax Considerations Disclosure

Apple Hospitality REIT has updated and refiled its description of the material U.S. federal income tax considerations relevant to its qualification and taxation as a REIT and to the purchase, ownership and disposition of its common shares, superseding prior inconsistent tax descriptions. The company reiterates that it has elected and believes it has qualified for REIT status since the 2008 tax year, under which it generally avoids federal corporate income tax on distributed REIT taxable income, though it outlines scenarios in which it may still incur federal tax, such as undistributed income, foreclosure property income and prohibited transactions.

The revised disclosure underscores the complexity and ongoing compliance requirements of maintaining REIT status, emphasizing that continued qualification depends on meeting detailed income, asset, distribution and ownership tests under the Internal Revenue Code. It also notes that Apple Hospitality has not obtained IRS rulings on its REIT qualification and that future legal or regulatory changes, or IRS challenges, could affect its tax treatment and, by extension, the after-tax returns and risk profile for shareholders.

The most recent analyst rating on (APLE) stock is a Hold with a $13.50 price target. To see the full list of analyst forecasts on Apple Hospitality REIT stock, see the APLE Stock Forecast page.

Apple Hospitality REIT Announces Board Member Resignation

Apple Hospitality REIT announced that board member Kristian Gathright resigned from its Board of Directors on February 9, 2026, after seven years of service. The company emphasized that her departure was not the result of any disagreement regarding its operations, policies or practices, suggesting an orderly governance transition rather than a sign of internal conflict.

The most recent analyst rating on (APLE) stock is a Hold with a $13.50 price target. To see the full list of analyst forecasts on Apple Hospitality REIT stock, see the APLE Stock Forecast page.

Apple Hospitality REIT Acquires New Motto by Hilton Nashville

On December 22, 2025, Apple Hospitality REIT announced it had opened and acquired the newly constructed 260-room Motto by Hilton Nashville Downtown for approximately $98.2 million, or $378,000 per key, under a fixed-price take-out contract secured in advance with a longstanding development partner. The property, located a few blocks off Broadway and within walking distance of major Nashville attractions and venues, adds a new, complementary brand to Apple Hospitality’s rooms-focused portfolio and deepens its presence in a downtown market where revenue per available room has been substantially outperforming both industry averages and the company’s own portfolio. With this transaction, Apple Hospitality’s holdings rise to 217 hotels with 29,580 guest rooms nationwide, reinforcing its strategic focus on high-demand urban and leisure markets and potentially enhancing long-term operating performance for shareholders given Nashville’s strong and diversified lodging demand drivers.

The most recent analyst rating on (APLE) stock is a Hold with a $12.50 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 November 2025 Metrics

On December 8, 2025, Apple Hospitality REIT released an updated investor presentation on its website, detailing certain operating statistics for November 2025. The company reported strong performance metrics, including a third quarter 2025 Comparable Hotels RevPAR of $124 and occupancy of 76%, surpassing industry averages. This announcement highlights Apple Hospitality’s effective investment strategy and operational efficiency, positioning it favorably within the real estate investment trust sector.

The most recent analyst rating on (APLE) stock is a Hold with a $12.50 price target. To see the full list of analyst forecasts on Apple Hospitality REIT stock, see the APLE Stock Forecast page.