Apple Hospitality REIT (APLE) AI Stock Analysis

• Market Cap: $3.01B
• Dividend Yield: 7.93%
• Average Volume (3M): 3.05M
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.89
• Revenue Growth: 2.42%
• EPS Growth: -13.51%
• Country: US
• Employees: 65
• Sector: Real Estate
• Sector Strength: 48
• Industry: REIT - Hotel & Motel
• EPS (TTM): 0.27
• Shares Outstanding: 236,989,840
• 10 Day Avg. Volume: 2,667,472
• 30 Day Avg. Volume: 3,049,597
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 3.07
• Enterprise Value/Gross Profit: 8.89
• Enterprise Value/Ebitda: 9.59
• 1Y Price Target: $12.50
• Price Target Upside: -1.81% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: $13.50 ▲(6.05% Upside)

Apple Hospitality REIT's overall score reflects a balance of strong financial management and attractive valuation against challenges in revenue growth and macroeconomic uncertainties. The technical indicators suggest positive momentum, while the earnings call provides a mixed outlook with strategic strengths offset by lower guidance.

Positive Factors

Financial Stability

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.

Revenue Performance

Revenue of $384 million was above consensus of $381.2 million and in line with expectations.

Negative Factors

Government Segment Performance

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

Guidance and Expectations

APLE lowered 2025 RevPAR/EBITDA guidance by $6 million/50 basis points at the midpoint.

Lodging Demand

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

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 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 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	1.42B	1.43B	1.34B	1.24B	933.87M	601.88M
Gross Profit	491.52M	509.21M	483.77M	455.03M	319.71M	445.78M
EBITDA	455.37M	483.36M	430.72M	412.56M	271.51M	97.75M
Net Income	180.95M	214.06M	177.49M	144.81M	18.83M	-173.21M
Balance Sheet
Total Assets	4.93B	4.97B	4.94B	4.77B	4.79B	4.83B
Cash, Cash Equivalents and Short-Term Investments	7.90M	10.25M	10.29M	4.08M	3.28M	5.56M
Total Debt	111.38M	1.58B	1.48B	1.48B	1.55B	1.70B
Total Liabilities	1.73B	1.70B	1.61B	1.59B	1.64B	1.80B
Stockholders Equity	3.20B	3.27B	3.32B	3.18B	3.15B	3.03B
Cash Flow
Free Cash Flow	363.99M	325.01M	326.98M	309.07M	199.25M	-21.83M
Operating Cash Flow	381.33M	405.35M	399.04M	368.45M	217.56M	26.73M
Investing Cash Flow	-53.30M	-215.71M	-364.63M	-135.91M	-150.68M	-82.26M
Financing Cash Flow	-324.72M	-189.19M	-34.31M	-228.97M	-61.30M	55.24M

Apple Hospitality REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.73
• 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 12.73 is above the 20-day moving average (MA) of 12.11, above the 50-day MA of 12.04, and below the 200-day MA of 13.07, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 61.99 is Neutral, neither overbought nor oversold. The STOCH value of 82.03 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	73 Outperform	$3.01B	17.02	5.54%	7.93%	2.42%	-13.51%
SHO	66 Neutral	$1.76B	443.19	0.96%	3.76%	0.37%	-97.38%
Sector *	65 Neutral	$2.08B	17.35	4.00%	5.02%	1.74%	-1.63%
PK	62 Neutral	$2.34B	44.05	1.58%	11.97%	-3.19%	-81.33%
DRH	61 Neutral	$1.73B	30.45	4.22%	5.02%	1.72%	-3.49%
RLJ	59 Neutral	$1.16B	36.20	2.53%	7.85%	1.42%	-20.13%
PEB	57 Neutral	$1.26B	―	-0.81%	0.37%	2.00%	50.70%

Apple Hospitality REIT Corporate Events

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 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.