Apple Hospitality REIT Inc (APLE)
NYSE:APLE
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Apple Hospitality REIT
(NYSE:APLE)
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Rating:70Outperform
Price Target:
$15.00
â–²(15.38% Upside)
Action:Upgraded
Date:05/12/26
The score is primarily supported by improved multi-year operating performance and steady operating cash generation, reinforced by a constructive earnings update (raised RevPAR guidance and resilient margins). Offsetting factors include weakening recent free-cash-flow momentum, stretched technical conditions (overbought signals), and a less attractive valuation profile due to a relatively high P/E despite a strong dividend yield.
Positive Factors
Revenue & Margin Improvement
Multi-year revenue expansion (2021→2025) alongside net margin improvement to ~12% indicates structurally stronger operating performance. Sustained top-line growth and higher margins support resilience through cycles, better coverage of fixed costs, and more durable distributable cash over the next several quarters.
Negative Factors
Weakening Free Cash Flow Momentum
A recent decline in free cash flow growth erodes the cushion for dividends, reinvestment and debt reduction. Over the next several quarters, softer FCF momentum reduces financial flexibility, may increase reliance on revolver or capital markets, and constrains accretive acquisition or buyback optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Margin Improvement
Multi-year revenue expansion (2021→2025) alongside net margin improvement to ~12% indicates structurally stronger operating performance. Sustained top-line growth and higher margins support resilience through cycles, better coverage of fixed costs, and more durable distributable cash over the next several quarters.
Read all positive factors
Apple Hospitality REIT (APLE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.33B
Dividend Yield8.3%
Average Volume (3M)3.86M
Price to Earnings (P/E)24.5
Beta (1Y)0.82
Revenue Growth-0.51%
EPS Growth-8.63%
CountryUS
Employees65
SectorReal Estate
Sector Strength53
IndustryREIT - Hotel & Motel
Share Statistics
EPS (TTM)0.73
Shares Outstanding236,067,550
10 Day Avg. Volume3,000,425
30 Day Avg. Volume3,856,931
Financial Highlights & Ratios
PEG Ratio-0.95
Price to Book (P/B)0.89
Price to Sales (P/S)2.00
P/FCF Ratio9.96
Enterprise Value/Market Cap1.49
Enterprise Value/Revenue3.49
Enterprise Value/Gross Profit11.47
Enterprise Value/Ebitda11.56
Forecast
1Y Price Target
$13.80Price Target Upside6.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.68
Revenue Forecast (FY)$1.43B
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 consis...
How the Company Makes Money
Apple Hospitality REIT makes money primarily by owning hotel properties and earning the cash flow generated by those hotels’ operations. The main revenue stream is hotel operating revenue produced at the property level—principally room revenue fro...
Apple Hospitality REIT Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call portrayed a strong operational quarter with broad-based RevPAR growth, revenue and EBITDA expansion, margin resilience on a same-store basis, improved April momentum, a raised RevPAR guidance midpoint, disciplined capital allocation, and a healthy liquidity position. Challenges were largely related to difficult year-ago comparisons (wildfire and inauguration effects), modest ADR growth earlier in the quarter, transition expenses from converting 13 Marriott-managed hotels, and a cautious transaction market. Overall, positives (outperformance, guidance raise, margin/cash-flow durability, and balance sheet flexibility) materially outweigh the limited challenges and conservatively framed risks.Positive Updates
Comparable RevPAR and Same-Store Strength
Comparable hotels RevPAR $115, up 2.2% YoY; same-store RevPAR grew 2.8% (Justin: comparable RevPAR growth >2%, same-store nearly 3%). Preliminary April comparable RevPAR +4%.
Negative Updates
Challenging Year-Over-Year Comparisons
Q1 2025 comps benefited from wildfire recovery in California and the D.C. inauguration, distorting comparisons (January comparable RevPAR was down 1.6% YoY due to those comps). Management notes some ADR headwinds tied to those comps.
Read all updates
Q1-2026 Updates
Positive
Negative
Comparable RevPAR and Same-Store Strength
Comparable hotels RevPAR $115, up 2.2% YoY; same-store RevPAR grew 2.8% (Justin: comparable RevPAR growth >2%, same-store nearly 3%). Preliminary April comparable RevPAR +4%.
Read all positive updates
Company Guidance
Apple raised full‑year RevPAR guidance by 100 basis points to 1% at the midpoint and now expects comparable hotels RevPAR change of 0%–2%, comparable hotels adjusted hotel EBITDA margin of 32.9%–33.9%, adjusted EBITDAre of $436M–$458M and net income of $143M–$169M (assuming total hotel expenses up ~3% at the midpoint, ~2% CPOR). Management plans $80M–$90M of reinvestment for the year, noted Q1 CapEx of ~$27.5M (annualized CapEx ≈6% of revenues), reported Q1 comparable hotels adjusted hotel EBITDA of $108M (up 3.6%) and adjusted EBITDAre of ≈$101M (up 2.2%), MFFO of ≈$80M or $0.34/sh (up 1.9% and 3%, respectively), paid Q1 distributions of ~$57M ($0.24/sh) and an annualized $0.96/sh (~7.2% yield), and closed the quarter with ~$1.6B total debt (~3.4x TTM EBITDA), a 4.6% weighted average interest rate, ~3‑year weighted average maturity, ~63% fixed/hedged, $8M cash and $559M revolver availability (207 unencumbered hotels).Apple Hospitality REIT Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
70
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.42B | 1.41B | 1.43B | 1.34B | 1.24B | 933.87M |
| Gross Profit | 433.46M | 90.08M | 509.21M | 483.77M | 455.03M | 319.71M |
| EBITDA | 429.95M | 458.45M | 483.36M | 430.72M | 388.18M | 271.51M |
| Net Income | 171.84M | 175.36M | 214.06M | 177.49M | 144.81M | 18.83M |
Balance Sheet | ||||||
| Total Assets | 4.89B | 4.90B | 4.97B | 4.94B | 4.77B | 4.79B |
| Cash, Cash Equivalents and Short-Term Investments | 7.84M | 39.42M | 10.25M | 10.29M | 4.08M | 3.28M |
| Total Debt | 1.68B | 1.77B | 1.58B | 1.48B | 1.48B | 1.55B |
| Total Liabilities | 1.77B | 1.75B | 1.70B | 1.61B | 1.59B | 1.64B |
| Stockholders Equity | 3.13B | 3.15B | 3.27B | 3.32B | 3.18B | 3.15B |
Cash Flow | ||||||
| Free Cash Flow | 319.88M | 282.81M | 325.01M | 326.98M | 309.07M | 199.25M |
| Operating Cash Flow | 369.94M | 370.22M | 405.35M | 399.04M | 368.45M | 217.56M |
| Investing Cash Flow | -164.08M | -135.38M | -215.71M | -364.63M | -135.91M | -150.68M |
| Financing Cash Flow | -235.18M | -239.49M | -189.19M | -34.31M | -228.97M | -61.30M |
Apple Hospitality REIT Technical Analysis
Positive
13.00
Price Trends
12.60
Positive
12.25
Positive
11.85
Positive
Market Momentum
0.39
Positive
62.95
Neutral
67.18
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 13 is below the 20-day moving average (MA) of 13.60, above the 50-day MA of 12.60, and above the 200-day MA of 11.85, indicating a bullish trend. The MACD of 0.39 indicates Positive momentum. The RSI at 62.95 is Neutral, neither overbought nor oversold. The STOCH value of 67.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APLE.
Apple Hospitality REIT Risk Analysis
Apple Hospitality REIT disclosed 38 risk factors in its most recent earnings report. Apple Hospitality REIT reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Apple Hospitality REIT Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.18B | 33.11 | 6.89% | 5.13% | -0.40% | 136.86% | |
70 Outperform | $3.33B | 24.53 | 5.43% | 8.30% | -0.51% | -8.63% | |
67 Neutral | $1.64B | -18.57 | -2.07% | 0.34% | 2.84% | -83.41% | |
66 Neutral | $1.94B | 22.86 | 1.94% | 3.98% | 6.83% | 23.48% | |
66 Neutral | $1.51B | 17.29 | 5.76% | 3.71% | 2.31% | 208.08% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | $2.23B | 47.62 | -6.59% | 13.10% | -2.20% | -280.33% |
* Real Estate Sector Average
APLE
Apple Hospitality REIT
13.98
3.28
30.63%
DRH
Diamondrock
10.51
3.37
47.28%
SHO
Sunstone Hotel
10.29
2.03
24.64%
PEB
Pebblebrook Hotel
14.28
5.20
57.32%
XHR
Xenia Hotels & Resorts
16.39
5.24
46.97%
PK
Park Hotels & Resorts
11.00
1.69
18.17%
Apple Hospitality REIT Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Apple Hospitality REIT Highlights Updated Investor Presentation Strengths
Positive
May 11, 2026
Apple Hospitality REIT on May 11, 2026 released an updated investor presentation highlighting its scale, balance sheet and recent performance, including $1.4 billion in comparable hotels revenue for the twelve months ended March 31, 2026 and a 33....
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Apple Hospitality REIT Posts Updated April 2026 Investor Presentation
Positive
May 5, 2026
On May 5, 2026, Apple Hospitality REIT made an updated investor presentation available on its website, offering fresh operating statistics for April 2026 and an overview of its capital position and performance metrics. The materials highlight the ...
Business Operations and StrategyDividendsFinancial DisclosuresRegulatory Filings and Compliance
Apple Hospitality REIT Updates Investor Presentation Highlighting Performance
Positive
Feb 27, 2026
On February 27, 2026, Apple Hospitality REIT made available an updated investor presentation containing operating statistics for January and February 2026 and detailed performance and capital metrics through year-end 2025. The presentation highlig...
Business Operations and StrategyRegulatory Filings and Compliance
Apple Hospitality REIT Updates Federal Tax Considerations Disclosure
Neutral
Feb 23, 2026
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, superse...
Executive/Board Changes
Apple Hospitality REIT Announces Board Member Resignation
Neutral
Feb 13, 2026
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 regardin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.