Apple Hospitality REIT (APLE)
NYSE:APLE
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Apple Hospitality REIT
(NYSE:APLE)
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Rating:67Neutral
Price Target:
$13.50
â–²(12.31% Upside)
Action:ReiteratedDate:02/28/26
The score is driven primarily by solid cash-flow generation and a generally manageable balance sheet, supported by an attractive dividend yield. Offsetting these positives, the latest operating trends and earnings call point to near-term demand softness (RevPAR/EBITDA pressure) and conservative 2026 guidance, while technicals indicate only mild positive momentum.
Positive Factors
Cash Generation
Consistent positive operating and free cash flow from 2021–2025, with FCF generally exceeding net income, provides durable internal funding for dividends, buybacks and selective capex. This persistent cash conversion supports payout stability and balance sheet flexibility through cycles.
Negative Factors
RevPAR and Revenue Weakness
Material RevPAR and top‑line declines in 2025 and early 2026 translate into persistent revenue and EBITDA pressure. For a lodging REIT, sustained RevPAR weakness structurally reduces distributable cash and constrains reinvestment ability until demand normalization or pricing power improves.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Consistent positive operating and free cash flow from 2021–2025, with FCF generally exceeding net income, provides durable internal funding for dividends, buybacks and selective capex. This persistent cash conversion supports payout stability and balance sheet flexibility through cycles.
Read all positive factors
Apple Hospitality REIT (APLE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.83B
Dividend Yield8.3%
Average Volume (3M)2.91M
Price to Earnings (P/E)23.8
Beta (1Y)0.75
Revenue Growth0.57%
EPS Growth-13.58%
CountryUS
Employees65
SectorReal Estate
Sector Strength53
IndustryREIT - Hotel & Motel
Share Statistics
EPS (TTM)0.13
Shares Outstanding235,658,810
10 Day Avg. Volume3,468,313
30 Day Avg. Volume2,908,603
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 Cap1.65
Enterprise Value/Revenue3.30
Enterprise Value/Gross Profit8.82
Enterprise Value/Ebitda10.83
Forecast
1Y Price Target
$12.60Price Target Upside4.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.68
Revenue Forecast (FY)$1.41B
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 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. It...
Apple Hospitality REIT Earnings Call Summary
Earnings Call Date:Feb 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Neutral
The call portrayed a balanced view: operationally the company demonstrated strong margin performance, disciplined capital allocation (asset sales, buybacks, selective redeployment), expense control, and portfolio resilience. However, revenue and cash-flow metrics were pressured by RevPAR declines, an ~8.6% YoY drop in adjusted hotel EBITDA, a material pullback in government travel, fixed cost growth, and some market-specific softness. Management provided conservative 2026 guidance while retaining flexibility via a solid revolving facility and recent term loan, leading to cautious optimism but measured near-term expectations.Positive Updates
Strong Adjusted EBITDA and Industry-Leading Margins
Comparable hotels adjusted hotel EBITDA of $99M in Q4 and $474M for FY2025; comparable hotels adjusted EBITDA margin of 31.1% for the quarter and 34.3% for the year, demonstrating operational profitability despite top-line pressures.
Negative Updates
RevPAR and Revenue Declines
Comparable hotels RevPAR declined to $118 for FY2025 (down 1.6% YoY) and $107 for Q4 (down 2.6% YoY). Comparable hotels total revenue was $319M in Q4 and $1.4B for the year, down ~2.1% YoY. Preliminary January 2026 comparable RevPAR down ~1.5% YoY.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Adjusted EBITDA and Industry-Leading Margins
Comparable hotels adjusted hotel EBITDA of $99M in Q4 and $474M for FY2025; comparable hotels adjusted EBITDA margin of 31.1% for the quarter and 34.3% for the year, demonstrating operational profitability despite top-line pressures.
Read all positive updates
Company Guidance
Management’s 2026 guidance calls for comparable hotels RevPAR to be -1% to +1% (flat at the midpoint), comparable hotels adjusted hotel EBITDA margin of 32.4%–33.4%, adjusted EBITDAre of $424M–$447M and net income of $133M–$160M; they assume total hotel expenses up ~3% at the midpoint (≈2% CPOR) with variable expenses roughly 2.7% and fixed expenses about 4.5% at the midpoint. The company will begin excluding share‑based compensation from adjusted EBITDA and MFFO effective 1/1/2026, the outlook is aligned with STR chain‑scale forecasts, does not assume any unannounced acquisitions or dispositions, and notes potential upside from easier comps and FIFA World Cup 2026 timing.Apple Hospitality REIT Financial Statement Overview
Summary
Income Statement
61
Positive
Balance Sheet
67
Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.41B | 1.43B | 1.34B | 1.24B | 933.87M |
| Gross Profit | 90.08M | 509.21M | 483.77M | 455.03M | 319.71M |
| EBITDA | 458.45M | 483.36M | 430.72M | 388.18M | 271.51M |
| Net Income | 175.36M | 214.06M | 177.49M | 144.81M | 18.83M |
Balance Sheet | |||||
| Total Assets | 4.90B | 4.97B | 4.94B | 4.77B | 4.79B |
| Cash, Cash Equivalents and Short-Term Investments | 39.42M | 10.25M | 10.29M | 4.08M | 3.28M |
| Total Debt | 1.77B | 1.58B | 1.48B | 1.48B | 1.55B |
| Total Liabilities | 1.75B | 1.70B | 1.61B | 1.59B | 1.64B |
| Stockholders Equity | 3.15B | 3.27B | 3.32B | 3.18B | 3.15B |
Cash Flow | |||||
| Free Cash Flow | 282.81M | 325.01M | 326.98M | 309.07M | 199.25M |
| Operating Cash Flow | 370.22M | 405.35M | 399.04M | 368.45M | 217.56M |
| Investing Cash Flow | -135.38M | -215.71M | -364.63M | -135.91M | -150.68M |
| Financing Cash Flow | -239.49M | -189.19M | -34.31M | -228.97M | -61.30M |
Apple Hospitality REIT Technical Analysis
Positive
12.02
Price Trends
11.87
Positive
11.78
Positive
11.64
Positive
Market Momentum
-0.07
Negative
57.44
Neutral
53.29
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 12.02 is above the 20-day moving average (MA) of 11.69, above the 50-day MA of 11.87, and above the 200-day MA of 11.64, indicating a bullish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 57.44 is Neutral, neither overbought nor oversold. The STOCH value of 53.29 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $2.83B | 23.79 | 5.50% | 8.30% | 0.57% | -13.58% | |
67 Neutral | $2.00B | 18.22 | 6.59% | 5.13% | 0.95% | -8.40% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $1.75B | 70.45 | 1.23% | 3.98% | 3.04% | -98.77% | |
63 Neutral | $2.19B | -2.54 | -8.42% | 13.10% | -3.57% | -104.55% | |
62 Neutral | $1.52B | -20.13 | -2.57% | 0.34% | 0.99% | -360.58% | |
62 Neutral | $1.40B | 21.68 | 5.33% | 3.71% | 4.29% | 141.01% |
* Real Estate Sector Average
APLE
Apple Hospitality REIT
12.02
1.59
15.29%
DRH
Diamondrock
9.76
3.15
47.68%
SHO
Sunstone Hotel
9.22
1.39
17.71%
PEB
Pebblebrook Hotel
13.38
4.91
57.97%
XHR
Xenia Hotels & Resorts
15.18
5.81
62.09%
PK
Park Hotels & Resorts
10.87
2.28
26.56%
Apple Hospitality REIT Corporate Events
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...
Business Operations and StrategyM&A Transactions
Apple Hospitality REIT Acquires New Motto by Hilton Nashville
Positive
Dec 22, 2025
On December 22, 2025, Apple Hospitality REIT announced it had opened and acquired the newly constructed 260-room Motto by Hilton Nashville Downtown for approximately $98.2 million, or $378,000 per key, under a fixed-price take-out contract secured...
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 Compara...
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.