Apple Hospitality REIT (APLE) AI Stock Analysis

• Market Cap: $2.91B
• Dividend Yield: 7.66%
• Average Volume (3M): 3.27M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.85
• Revenue Growth: 4.98%
• EPS Growth: -7.08%
• Country: US
• Employees: 65
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Hotel & Motel
• EPS (TTM): 0.13
• Shares Outstanding: 237,914,340
• 10 Day Avg. Volume: 3,091,313
• 30 Day Avg. Volume: 3,269,070
• 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: 1.85
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 10.73
• Enterprise Value/Ebitda: 2.87
• 1Y Price Target: $12.60
• Price Target Upside: 0.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 71 Outperform
• Price Target: $13.00 ▲(3.92%Upside)

The company exhibits robust financial health and attractive valuation metrics. While corporate events and technical indicators are supportive, the mixed earnings call sentiment and recent revenue challenges slightly dampen the overall outlook.

Positive Factors

Financial Performance

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

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

Group Exposure

APLE's low group exposure reduces visibility and provides less of a buffer in an already uncertain macro environment.

Lodging Demand

Lodging demand remains uneven, contributing to a recent update from APLE that was worse than expected.

Apple Hospitality REIT Business Overview & Revenue Model

Company Description

Apple Hospitality REIT, Inc. (APLE) is a publicly traded real estate investment trust that owns one of the largest and most diverse portfolios of upscale, rooms-focused hotels in the United States. The company primarily invests in premium branded hotels, including those under the Marriott, Hilton, and Hyatt brands. Apple Hospitality is headquartered in Richmond, Virginia, and emphasizes acquiring and managing high-quality properties in high-demand markets to deliver attractive returns to its shareholders.

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
EBITDA	463.27M	483.36M	430.72M	412.56M	271.51M	97.75M
Net Income	191.24M	214.06M	177.49M	144.81M	18.83M	-173.21M
Balance Sheet
Total Assets	4.95B	4.97B	4.94B	4.77B	4.79B	4.83B
Cash, Cash Equivalents and Short-Term Investments	14.92M	10.25M	10.29M	4.08M	3.28M	5.56M
Total Debt	1.65B	1.58B	1.48B	1.48B	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: Positive
• Last Price: 12.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 12.51 is above the 20-day moving average (MA) of 11.81, above the 50-day MA of 11.69, and below the 200-day MA of 13.46, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 66.88 is Neutral, neither overbought nor oversold. The STOCH value of 91.54 is Negative, 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	71 Outperform	$2.91B	15.79	5.84%	7.66%	4.98%	-7.08%
PK	71 Outperform	$2.27B	19.11	3.46%	8.82%	-3.68%	35.35%
PEB	69 Neutral	$1.32B	―	-0.33%	0.36%	2.18%	56.00%
DRH	66 Neutral	$1.69B	41.36	3.22%	3.92%	3.73%	-44.49%
RLJ	64 Neutral	$1.19B	29.80	2.92%	7.71%	2.82%	-8.08%
SHO	61 Neutral	$1.84B	95.76	1.66%	3.89%	-3.90%	-89.21%
Sector *	54 Neutral	$1.20B	3.61	0.13%	7.01%	-2.13%	-128.06%

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.