Apple Hospitality REIT Inc (APLE)
NYSE:APLE
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Apple Hospitality REIT
(NYSE:APLE)
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Rating:72Outperform
Price Target:
$18.00
â–²(38.46% Upside)
Action:Reiterated
Date:05/30/26
APLE scores positively on fundamentals and recent operating updates: improved profitability versus 2021, steady operating cash flow, and a constructive earnings call with raised RevPAR guidance and continued MFFO/EBITDAre growth. The main offsets are softening free-cash-flow momentum and profitability volatility, plus stretched technical momentum (overbought signals). The high dividend yield supports the profile, while the P/E limits the valuation upside.
Positive Factors
Portfolio Scale & Diversification
A large, geographically diversified portfolio of 216 upscale, rooms-focused hotels spreads demand and market risk across 83 markets and multiple brands. Scale supports stable cash flow, bargaining power with operators and franchisees, and reduces idiosyncratic asset volatility over business cycles.
Negative Factors
Weak Free Cash Flow Momentum
Declining free cash flow growth over recent periods reduces internal funding for dividends, renovations and deleveraging. If the FCF trend persists it constrains capital allocation flexibility and raises reliance on revolver or new debt to fund buybacks or unexpected capex, elevating medium-term funding risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Portfolio Scale & Diversification
A large, geographically diversified portfolio of 216 upscale, rooms-focused hotels spreads demand and market risk across 83 markets and multiple brands. Scale supports stable cash flow, bargaining power with operators and franchisees, and reduces idiosyncratic asset volatility over business cycles.
Read all positive factors
Apple Hospitality REIT (APLE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.81B
Dividend Yield8.3%
Average Volume (3M)2.99M
Price to Earnings (P/E)22.3
Beta (1Y)0.79
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. Volume3,212,984
30 Day Avg. Volume2,988,252
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 Cap1.35
Enterprise Value/Revenue3.61
Enterprise Value/Gross Profit11.85
Enterprise Value/Ebitda11.95
Forecast
1Y Price Target
$15.00Price Target Upside15.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.69
Revenue Forecast (FY)$1.44B
Apple Hospitality REIT Business Overview & Revenue Model
Company Description
Apple Hospitality REIT, Inc. (NYSE: APLE) operates as a publicly traded real estate investment trust, managing one of the largest and most diverse collections of upscale, rooms-focused hotel properties throughout the United States. Its expansive p...
How the Company Makes Money
APLE makes money primarily by owning hotels and earning property-level cash flow generated from hotel operations. Its core revenue stream is hotel room revenue (paid by guests for overnight stays), which is typically the largest component of a sel...
Apple Hospitality REIT Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 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
13.76
Positive
12.76
Positive
12.11
Positive
Market Momentum
0.68
Negative
79.81
Negative
92.02
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 13 is below the 20-day moving average (MA) of 14.99, below the 50-day MA of 13.76, and above the 200-day MA of 12.11, indicating a bullish trend. The MACD of 0.68 indicates Negative momentum. The RSI at 79.81 is Negative, neither overbought nor oversold. The STOCH value of 92.02 is Negative, 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 | $2.43B | 23.43 | 6.89% | 5.13% | -0.40% | 136.86% | |
72 Outperform | $3.81B | 22.29 | 5.43% | 8.30% | -0.51% | -8.63% | |
68 Neutral | $2.18B | 58.29 | 1.94% | 3.98% | 6.83% | 23.48% | |
67 Neutral | $2.01B | -39.52 | -2.07% | 0.34% | 2.84% | -83.41% | |
66 Neutral | $1.77B | 26.65 | 5.76% | 3.71% | 2.31% | 208.08% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | $2.89B | -13.42 | -6.59% | 13.10% | -2.20% | -280.33% |
* Real Estate Sector Average
APLE
Apple Hospitality REIT
16.22
5.67
53.73%
DRH
Diamondrock
11.92
4.76
66.39%
SHO
Sunstone Hotel
11.72
3.56
43.63%
PEB
Pebblebrook Hotel
18.18
9.25
103.63%
XHR
Xenia Hotels & Resorts
19.45
7.94
69.03%
PK
Park Hotels & Resorts
14.50
5.48
60.79%
Apple Hospitality REIT Corporate Events
Executive/Board Changes
Apple Hospitality REIT Consolidates Financial and Accounting Leadership
Neutral
Jun 10, 2026
On June 10, 2026, Apple Hospitality REIT appointed Senior Vice President and Chief Financial Officer Elizabeth S. Perkins to also serve as the company’s principal accounting officer, consolidating key finance and accounting responsibilities ...
Business Operations and StrategyFinancial Disclosures
Apple Hospitality REIT Highlights Portfolio Scale and 2025 Performance
Positive
May 29, 2026
On May 29, 2026, Apple Hospitality REIT published an updated investor presentation on its website for use at upcoming conferences, highlighting recent operating statistics and the scope of its U.S. hotel portfolio. The materials underscore the REI...
Executive/Board ChangesStock BuybackShareholder Meetings
Apple Hospitality REIT Extends Share Repurchase Program Authorization
Positive
May 27, 2026
At its annual meeting held on May 22, 2026, Apple Hospitality REIT shareholders elected eight directors to one-year terms expiring at the 2027 annual meeting and approved, on an advisory basis, the compensation of the company’s named executi...
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 ...
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.