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Apple Hospitality REIT (APLE)
NYSE:APLE
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Apple Hospitality REIT
(NYSE:APLE)
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Select Model
Rating:64Neutral
Price Target:
$12.50
â–²(3.82% Upside)
Apple Hospitality REIT's overall score reflects operational efficiency and a strong dividend yield, which are offset by challenges in revenue growth and cash flow management. The earnings call provided a mixed outlook, with strategic initiatives being overshadowed by revenue declines and economic uncertainties.
Positive Factors
Strategic Portfolio Expansion
The acquisition of a new hotel in a high-demand market like Nashville enhances Apple Hospitality's portfolio, potentially boosting long-term revenue and market presence.
Operational Efficiency
Stable operational margins and a healthy gross margin indicate efficient cost management, supporting sustainable profitability over time.
Strong Balance Sheet
A stable balance sheet with moderate leverage provides financial flexibility, enabling Apple Hospitality to pursue strategic investments and withstand economic fluctuations.
Negative Factors
Revenue Decline
A significant decline in revenue indicates challenges in maintaining growth, which could impact long-term profitability and shareholder returns if not addressed.
Negative Free Cash Flow Growth
Negative free cash flow growth suggests potential cash management issues, which could limit the company's ability to invest in growth opportunities or return capital to shareholders.
RevPAR and Occupancy Declines
Declines in RevPAR and occupancy rates indicate reduced demand, which could pressure revenue and profitability if these trends persist.
Apple Hospitality REIT (APLE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.86B
Dividend Yield8.3%
Average Volume (3M)2.61M
Price to Earnings (P/E)16.4
Beta (1Y)0.75
Revenue Growth0.57%
EPS Growth-13.58%
CountryUS
Employees65
SectorReal Estate
Sector Strength53
IndustryREIT - Hotel & Motel
Share Statistics
EPS (TTM)0.21
Shares Outstanding236,575,700
10 Day Avg. Volume2,910,694
30 Day Avg. Volume2,613,497
Financial Highlights & Ratios
PEG Ratio1.11
Price to Book (P/B)1.13
Price to Sales (P/S)2.59
P/FCF Ratio11.39
Enterprise Value/Market Cap1.53
Enterprise Value/Revenue3.09
Enterprise Value/Gross Profit6.92
Enterprise Value/Ebitda10.22
Forecast
1Y Price Target
$12.83Price Target Upside6.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Apple Hospitality REIT Business Overview & Revenue Model
Company DescriptionApple 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 MoneyApple 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 Earnings Call Summary
Earnings Call Date:Sep 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 23, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with strategic asset sales and share repurchases highlighting positive capital allocation strategies. However, declines in RevPAR and overall revenue, exacerbated by the government shutdown and broader economic uncertainty, present significant challenges.Q3-2025 Updates
Positive Updates
Strategic Asset Sales and Share Repurchases
Completed the sale of 3 hotels for $37 million and have 4 more under contract for $36 million. Proceeds used for share repurchases, totaling approximately $48 million for 3.8 million shares at an average price of $12.73 per share.
Portfolio Management and Future Investments
Transitioning Marriott-managed hotels to franchise agreements to unlock operational synergies. Entered into agreements for the development of 3 hotels in key markets, further enhancing portfolio positioning.
Strong Dividend and Cash Flow
Paid distributions totaling $57 million or $0.24 per common share, representing an annual yield of approximately 8.6%.
Efficient Cost Management
Variable expense growth has moderated, with reductions in contract labor and strong cost control measures implemented.
Future Demand Opportunities
Well-positioned to benefit from the 2026 FIFA World Cup and potential improvements in travel demand.
Negative Updates
Government Shutdown Impact
RevPAR declined approximately 3% in October due to the government shutdown, affecting government and adjoining business travel.
Overall Revenue Decline
Comparable hotels total revenue for the quarter was down approximately 1%, and adjusted hotel EBITDA was down 7% compared to the same period in 2024.
RevPAR and Occupancy Declines
For the quarter, RevPAR was $124, down 1.8%, and occupancy was 76%, down 1.2% compared to the previous year.
Macroeconomic Headwinds
Faced with elevated macroeconomic uncertainty and a pullback in government travel, weighing on year-over-year growth.
Company Guidance
During Apple Hospitality REIT's Third Quarter 2025 Earnings Call, the company reported a comparable hotels occupancy of 76%, down 1.2%; ADR of $163, down 0.6%; and RevPAR of $124, down 1.8% year-over-year. The earnings call highlighted challenges such as policy uncertainty, expense pressures, and reduced government travel, which affected operating performance. Despite these challenges, Apple Hospitality REIT achieved a comparable hotels EBITDA margin of 35.2%. The company has strategically focused on capital allocation by selling assets worth $37 million, including a $16 million sale of the Houston Marriott, and has four more hotels under contract for sale totaling $36 million. Proceeds from these sales have been used to repurchase approximately 3.8 million shares at an average price of $12.73 per share, totaling $48 million. The company also announced development agreements for three hotels in dynamic markets, including an AC hotel in Anchorage and a dual-branded AC Hotel and Residence Inn in Las Vegas, with expected costs of $66 million and $144 million, respectively. Apple Hospitality's updated 2025 guidance anticipates net income between $162 million and $175 million, with a 1% to 2% decline in RevPAR, due partly to the government shutdown's impact on October 2025 performance, which saw a 3% RevPAR decline compared to October 2024.Apple Hospitality REIT Financial Statement Overview
Summary
Apple Hospitality REIT demonstrates operational efficiency with stable margins, but faces challenges in revenue growth and cash flow management. The balance sheet remains strong with moderate leverage, but declining ROE and free cash flow growth are areas of concern. Overall, the company maintains a stable financial position, but needs to address revenue and cash flow issues to improve its financial health.Income Statement
Apple Hospitality REIT's income statement shows a mixed performance. The TTM gross profit margin is healthy at 44.6%, but the net profit margin has decreased to 12.4% from 14.9% in the previous year. Revenue has declined by 34.9% TTM, indicating potential challenges in revenue generation. EBIT and EBITDA margins remain stable, suggesting operational efficiency. However, the significant revenue drop is a concern.65
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.54, indicating moderate leverage. The return on equity is 5.5% TTM, showing a slight decrease from the previous year. The equity ratio is strong, suggesting a solid capital structure. Overall, the balance sheet is stable, but the slight decline in ROE warrants attention.70
Positive
Cash Flow
Cash flow analysis reveals a decline in free cash flow growth by 142.1% TTM, which is concerning. The operating cash flow to net income ratio is strong at 3.41, indicating good cash generation relative to net income. However, the negative free cash flow growth highlights potential cash flow management issues.60
Neutral
| 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 | 633.49M | 509.21M | 483.77M | 455.03M | 319.71M | 121.36M |
| EBITDA | 428.72M | 483.36M | 430.72M | 388.18M | 271.51M | 97.75M |
| Net Income | 175.57M | 214.06M | 177.49M | 144.81M | 18.83M | -173.21M |
Balance Sheet | ||||||
| Total Assets | 4.91B | 4.97B | 4.94B | 4.77B | 4.79B | 4.83B |
| Cash, Cash Equivalents and Short-Term Investments | 50.29M | 10.25M | 10.29M | 4.08M | 3.28M | 5.56M |
| Total Debt | 1.62B | 1.58B | 1.48B | 1.48B | 1.55B | 1.70B |
| Total Liabilities | 1.72B | 1.70B | 1.61B | 1.59B | 1.64B | 1.80B |
| Stockholders Equity | 3.19B | 3.27B | 3.32B | 3.18B | 3.15B | 3.03B |
Cash Flow | ||||||
| Free Cash Flow | 358.82M | 325.01M | 326.98M | 309.07M | 199.25M | -21.83M |
| Operating Cash Flow | 379.58M | 405.35M | 399.04M | 368.45M | 217.56M | 26.73M |
| Investing Cash Flow | -43.94M | -215.71M | -364.63M | -135.91M | -150.68M | -82.26M |
| Financing Cash Flow | -289.01M | -189.19M | -34.31M | -228.97M | -61.30M | 55.24M |
Apple Hospitality REIT Technical Analysis
Positive
12.04
Price Trends
11.66
Positive
11.84
Positive
11.68
Positive
Market Momentum
0.13
Positive
54.21
Neutral
28.45
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 12.04 is above the 20-day moving average (MA) of 11.94, above the 50-day MA of 11.66, and above the 200-day MA of 11.68, indicating a bullish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 54.21 is Neutral, neither overbought nor oversold. The STOCH value of 28.45 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 40 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $1.89B | 35.36 | 3.98% | 5.13% | 0.95% | -8.40% | |
64 Neutral | $2.86B | 16.41 | 5.41% | 8.30% | 0.57% | -13.58% | |
64 Neutral | $1.40B | 26.34 | 4.58% | 3.71% | 4.29% | 141.01% | |
57 Neutral | $1.73B | 988.04 | 0.88% | 3.98% | 3.04% | -98.77% | |
56 Neutral | $2.17B | -144.34 | -0.36% | 13.10% | -3.57% | -104.55% | |
54 Neutral | $1.31B | -9.69 | -3.74% | 0.34% | 0.99% | -360.58% |
* Real Estate Sector Average
APLE
Apple Hospitality REIT
12.04
-2.23
-15.63%
DRH
Diamondrock
9.17
0.46
5.28%
SHO
Sunstone Hotel
9.09
-2.46
-21.30%
PEB
Pebblebrook Hotel
11.48
-2.05
-15.15%
XHR
Xenia Hotels & Resorts
14.74
0.25
1.73%
PK
Park Hotels & Resorts
10.84
-2.47
-18.56%
Apple Hospitality REIT Corporate Events
Business Operations and StrategyFinancial Disclosures
Apple Hospitality REIT Releases November 2025 Metrics
Positive
Dec 8, 2025
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.
Business Operations and StrategyFinancial Disclosures
Apple Hospitality REIT Updates Investor Presentation
Positive
Nov 19, 2025
On November 19, 2025, Apple Hospitality REIT released an updated investor presentation on its website, detailing operating statistics for October and November 2025. The presentation highlights the company’s strong financial performance, including a third-quarter 2025 RevPAR of $124 and occupancy rate of 76%, surpassing industry averages. The company continues to focus on geographic diversification and strategic reinvestment to optimize its portfolio for long-term growth, maintaining a strong balance sheet to pursue accretive opportunities.
Business Operations and StrategyFinancial Disclosures
Apple Hospitality REIT Releases October 2025 Performance Update
Positive
Nov 10, 2025
On November 10, 2025, Apple Hospitality REIT released an updated investor presentation on its website, detailing operating statistics for October 2025. The company reported strong performance metrics, including a third-quarter 2025 RevPAR of $124, occupancy of 76%, and ADR of $163, surpassing industry averages. These results highlight Apple Hospitality’s effective investment strategy and robust market positioning, providing positive implications for stakeholders.
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.