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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on APLE

Apple Hospitality REIT's recent performance was driven by strategic portfolio expansion, including the acquisition of the 260-room Motto by Hilton Downtown in Nashville, valued at $98.2M. This move taps into year-round leisure, convention, and corporate demand. The company also maintains a solid financial position, with low leverage and a prudent asset management strategy. Additionally, its attractive 8.6% monthly dividend yield and opportunistic share buybacks have enhanced shareholder value. (Source: Apple Hospitality REIT's Q3 2025 earnings call, BUSINESS WIRE)

1.c. Company Highlights

2. Apple Hospitality REIT's Q4 2025 Earnings: A Review of Financial Performance

Apple Hospitality REIT reported comparable hotels total revenue of $319 million for the quarter and $1.4 billion for the full year 2025, down approximately 2.1% compared to the same periods in 2024. The company's adjusted hotel EBITDA was $99 million for the quarter and $474 million for the year, down 8.6% compared to the same periods in 2024. Earnings per share (EPS) came in at $0.31, beating analyst estimates of $0.29. The company's adjusted EBITDAre margin was 31.1% for the fourth quarter and 34.3% for the year, down 210 basis points and 190 basis points, respectively.

Publication Date: Feb -25

📋 Highlights
  • RevPAR Decline:: Full-year 2025 comparable hotels RevPAR was $118, down 1.6% YoY, with January 2026 showing a 1.5% decline YoY due to weather disruptions and comp challenges.
  • Capital Allocation:: Sold 7 hotels for $73M and repurchased 4.6M shares for $58M in 2025, reflecting disciplined asset management and shareholder return strategies.
  • Franchise Transition:: Transitioned 13 Marriott-managed hotels to franchise, consolidating third-party management to enhance operational efficiency and synergies.
  • EBITDA Decline:: 2025 adjusted hotel EBITDA fell to $474M (-8.6% YoY), driven by lower RevPAR and operating expenses, with EBITDA margin at 34.3% (-190 bps YoY).
  • 2026 Guidance:: Projects flat RevPAR growth (±1%) and EBITDA margin of 32.4–33.4%, citing FIFA World Cup tailwinds and easier comps from 2025 disruptions.

Operational Highlights

The company's comparable hotels RevPAR was $107 for the fourth quarter, down 2.6% year-over-year. Average daily rate (ADR) was $152, down 90 basis points, and occupancy was 70%, down 1.7% compared to the fourth quarter of 2024. For the full year 2025, comparable hotels RevPAR was $118, down 1.6% year-over-year. The company's portfolio continues to outperform the industry, with STR reporting RevPAR of $100 and average occupancy of 62% for 2025.

Guidance and Outlook

Apple Hospitality REIT expects comparable hotels RevPAR to be flat at the midpoint in 2026, with net income between $133 million and $160 million. The company expects adjusted EBITDAre to be between $424 million and $447 million, with adjusted hotel EBITDA margin between 32.4% and 33.4%. The company is optimistic about its outlook for 2026, citing potential benefits from the FIFA World Cup and easier comparisons to periods affected by government spending cuts and the government shutdown in late 2025.

Valuation and Metrics

With a P/E Ratio of 16.48 and a Dividend Yield of 7.9%, Apple Hospitality REIT appears to be reasonably valued. The company's ROE of 5.5% and ROIC of 5.13% indicate a stable return profile. The Net Debt / EBITDA ratio of 4.03 suggests a manageable debt burden. Analysts estimate revenue growth of 2.4% for the next year, which, combined with the company's current valuation metrics, suggests a stable outlook.

3. NewsRoom

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SG Americas Securities LLC Raises Stock Position in Apple Hospitality REIT, Inc. $APLE

Apr -08

Source: defenseworld.net

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5 Low Price-to-Sales Stocks to Strengthen Your Investment Portfolio

Apr -01

Source: zacks.com

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Apple Hospitality REIT, Inc. (NYSE:APLE) Receives $12.75 Consensus PT from Analysts

Mar -28

Source: defenseworld.net

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5 Undervalued Price-to-Sales Stocks With Solid Upside Potential

Mar -13

Source: zacks.com

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Apple Hospitality REIT Announces Dates for First Quarter 2026 Earnings Release and Conference Call

Mar -11

Source: businesswire.com

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Citigroup Inc. Sells 148,405 Shares of Apple Hospitality REIT, Inc. $APLE

Mar -07

Source: defenseworld.net

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Nokomis Capital Initiates Stake in Apple Hospitality REIT as Marriott and Hilton Hotels Drive Steady Demand

Mar -05

Source: fool.com

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Cash COWs: 12 High-Yield REITs With Safe Dividends

Mar -02

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.44%)

6. Segments

Room

Expected Growth: 4.5%

Apple Hospitality REIT's 4.5% room growth is driven by increasing demand for mid-scale hotels, strategic acquisitions, and effective asset management. Additionally, the company's focus on operational efficiency, revenue management, and loyalty programs contribute to the growth. Furthermore, the growing popularity of travel and tourism, particularly in the US, also supports the segment's expansion.

Other

Expected Growth: 3.5%

Apple Hospitality REIT's 3.5% growth in 'Other' segment is driven by increasing demand for its hospitality services, strategic acquisitions, and effective cost management. Additionally, the company's diversified portfolio of hotels across the US, with a focus on select-service properties, has contributed to its growth. Furthermore, the company's ability to maintain a strong balance sheet and invest in growth initiatives has also supported its growth momentum.

Food and Beverage

Expected Growth: 4.2%

Apple Hospitality REIT's 4.2% growth in Food and Beverage is driven by increasing demand for experiential travel, strategic hotel acquisitions, and effective cost management. Additionally, the company's focus on premium brands, such as Hilton and Marriott, contributes to higher average daily rates and revenue per available room.

7. Detailed Products

Hotels

Apple Hospitality REIT, Inc. owns and invests in a diversified portfolio of upscale, select-service hotels, including Hilton, Marriott, and Hyatt branded properties.

Hospitality Real Estate

The company acquires, owns, and operates a portfolio of hotel properties, providing a steady income stream through rental income.

Hotel Management Services

Apple Hospitality REIT, Inc. provides management services to its hotel properties, ensuring efficient operations and maximizing revenue potential.

Franchise Agreements

The company enters into franchise agreements with leading hotel brands, ensuring consistency and quality across its portfolio.

8. Apple Hospitality REIT, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Apple Hospitality REIT, Inc. operates in the hospitality industry, which has a low threat of substitutes due to the unique experiences and services offered by hotels.

Bargaining Power Of Customers

Customers have some bargaining power due to the availability of alternative accommodations, but Apple Hospitality REIT, Inc.'s strong brand reputation and loyalty programs help to mitigate this power.

Bargaining Power Of Suppliers

Suppliers of goods and services to Apple Hospitality REIT, Inc. have limited bargaining power due to the company's large scale and negotiating power.

Threat Of New Entrants

The hospitality industry has a high threat of new entrants due to the relatively low barriers to entry, and Apple Hospitality REIT, Inc. must continually innovate and improve its services to stay competitive.

Intensity Of Rivalry

The hospitality industry is highly competitive, with many established players and a high level of rivalry among companies, including Apple Hospitality REIT, Inc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 29.30%
Debt Cost 6.24%
Equity Weight 70.70%
Equity Cost 9.54%
WACC 8.58%
Leverage 41.45%

11. Quality Control: Apple Hospitality REIT, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Rithm Capital

A-Score: 7.1/10

Value: 7.1

Growth: 3.9

Quality: 5.9

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Apple Hospitality REIT

A-Score: 6.3/10

Value: 6.9

Growth: 5.7

Quality: 5.7

Yield: 9.0

Momentum: 2.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Innovative Industrial Properties

A-Score: 6.1/10

Value: 6.8

Growth: 6.2

Quality: 8.2

Yield: 10.0

Momentum: 0.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Host Hotels & Resorts

A-Score: 6.1/10

Value: 5.1

Growth: 5.6

Quality: 5.6

Yield: 7.0

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Park Hotels & Resorts

A-Score: 6.1/10

Value: 8.2

Growth: 5.0

Quality: 4.8

Yield: 10.0

Momentum: 2.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Ryman Hospitality Properties

A-Score: 5.6/10

Value: 3.1

Growth: 7.0

Quality: 5.3

Yield: 6.0

Momentum: 3.5

Volatility: 8.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.02$

Current Price

12.02$

Potential

-0.00%

Expected Cash-Flows