Apple Hospitality REIT, Inc. (APLE) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Apple Hospitality REIT, Inc. (APLE) Real Estate Portfolio & Strategy

Apple Hospitality REIT, Inc. (APLE) specializes in owning a large, diversified portfolio of upscale, rooms-focused hotels across the United States, primarily under the Marriott and Hilton brands. As a REIT, it aims to deliver value through strategic property management and consistent dividend payouts within the hospitality sector.

What Is the Investment Thesis for APLE?

The company's diversified portfolio of 235 hotels across 87 markets in 34 states reduces geographic risk. With a dividend yield of 6.79%, APLE offers attractive income potential in a low-interest-rate environment. The company's P/E ratio of 21.05 suggests a reasonable valuation relative to its earnings. Ongoing: Continued recovery in travel and tourism, particularly in the business and leisure segments, should drive revenue growth. However, potential risks include economic downturns impacting travel demand and increased competition from alternative lodging options.

Based on FMP financials and quantitative analysis

APLE Key Highlights

Apple Hospitality REIT owns a diverse portfolio of 235 hotels, mitigating risk through geographic diversification across 34 states.

• The company's focus on upscale, rooms-focused hotels allows for efficient operations and potentially higher profit margins, reflected in a Gross Margin of 30.5%.
• A dividend yield of 6.79% provides an attractive income stream for investors, supported by the company's REIT structure and consistent cash flow.
• The company's affiliation with leading brands like Marriott and Hilton ensures a consistent level of quality and service, attracting a broad customer base.
• With a market capitalization of $3.69B, Apple Hospitality REIT is a significant player in the hotel REIT sector, indicating stability and market presence.

Who Are APLE's Competitors?

APLE is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are APLE's Key Strengths?

Strong brand affiliations with Marriott and Hilton.

• Diversified portfolio across multiple markets.
• Efficient operations focused on rooms-focused hotels.
• Consistent dividend payouts as a REIT.

What Are APLE's Weaknesses?

Sensitivity to economic cycles and travel demand.

• Limited exposure to full-service hotels and resorts.
• Reliance on brand standards and franchise agreements.
• Potential for increased competition from alternative lodging options.

What Could Drive APLE Stock Higher?

Recovery in travel demand and occupancy rates.

• Strategic acquisitions of additional hotel properties.
• Revenue management optimization initiatives.
• Portfolio repositioning through renovations and upgrades.

What Are the Key Risks for APLE?

Financial-distress signal — its Altman Z-Score of 1.24 sits in the distress zone (elevated bankruptcy risk).

• Economic downturns impacting travel and tourism.
• Increased competition from alternative lodging options.
• Rising interest rates increasing borrowing costs.
• Changes in consumer preferences and travel patterns.

What Are the Growth Opportunities for APLE?

• Growth opportunity 1: Expansion through Acquisitions: Apple Hospitality can grow by acquiring additional upscale, rooms-focused hotels in strategic markets. The market for hotel acquisitions is estimated at billions of dollars annually, with opportunities to consolidate fragmented ownership. Timeline: Ongoing, with potential acquisitions each year. Competitive advantage: The company's strong balance sheet and experience in property management.
• Growth opportunity 2: Revenue Management Optimization: Implementing advanced revenue management strategies to maximize occupancy rates and average daily rates (ADR). The market for revenue management software and services is growing, with potential to increase revenue by 5-10%. Timeline: Within the next 1-2 years. Competitive advantage: Leveraging data analytics and technology to optimize pricing and inventory.
• Growth opportunity 3: Portfolio Repositioning: Upgrading and renovating existing hotels to enhance their appeal and increase ADR. The market for hotel renovations is substantial, with potential to increase property value and revenue. Timeline: Ongoing, with renovations planned for select properties each year. Competitive advantage: Maintaining high standards and brand consistency.
• Growth opportunity 4: Strategic Partnerships: Collaborating with travel agencies, online travel platforms, and corporate clients to drive bookings. The market for travel partnerships is expanding, with potential to reach new customer segments. Timeline: Within the next 1-2 years. Competitive advantage: Leveraging existing relationships and building new partnerships.
• Growth opportunity 5: Capitalizing on Emerging Travel Trends: Adapting to changing travel preferences, such as increased demand for sustainable travel and experiential tourism. The market for sustainable travel is growing, with potential to attract environmentally conscious travelers. Timeline: Ongoing, with initiatives to reduce environmental impact and offer unique experiences. Competitive advantage: Aligning with evolving customer values and preferences.

What Are APLE's Competitive Advantages?

• Brand Affiliation: Strong relationships with leading hotel brands like Marriott and Hilton.
• Diversified Portfolio: A large and geographically diverse portfolio of hotels.
• REIT Structure: Tax advantages and consistent dividend payouts.
• Efficient Operations: Focus on rooms-focused hotels with streamlined operations.

What Does APLE Do?

Apple Hospitality REIT, Inc. was established to capitalize on the demand for upscale, select-service hotels in the United States. The company operates as a real estate investment trust (REIT), focusing on acquiring and managing a portfolio of hotels concentrated on rooms-focused properties. The company's strategy revolves around owning a diverse collection of hotels affiliated with leading brands such as Marriott and Hilton. These brands provide a consistent level of quality and service, attracting a broad customer base. As of 2026, Apple Hospitality's portfolio includes 235 hotels with over 30,000 guest rooms, spread across 87 markets in 34 states. This geographic diversification helps mitigate risk associated with regional economic fluctuations. The company's focus on rooms-focused hotels allows for efficient operations and higher profit margins compared to full-service hotels with extensive amenities. Apple Hospitality REIT aims to deliver long-term value to shareholders through strategic property management, consistent dividend payouts, and disciplined capital allocation.

What Products and Services Does APLE Offer?

• Owns a portfolio of upscale, rooms-focused hotels.
• Operates as a real estate investment trust (REIT).
• Manages hotels under leading brands like Marriott and Hilton.
• Acquires and develops hotel properties in strategic markets.
• Focuses on select-service hotels with limited amenities.
• Generates revenue through room rentals and related services.
• Distributes income to shareholders through dividends.

How Does APLE Make Money?

• Acquires and manages a portfolio of upscale, rooms-focused hotels.
• Generates revenue primarily from room rentals.
• Operates under a REIT structure, distributing a significant portion of income to shareholders.
• Focuses on efficient operations and cost management to maximize profitability.

What Industry Does APLE Operate In?

Apple Hospitality REIT operates within the REIT - Hotel & Motel industry, which is influenced by macroeconomic factors such as GDP growth, employment rates, and consumer confidence. The industry is currently experiencing a recovery phase following the pandemic, with increasing travel demand driving occupancy rates and room rates. Competitors like Host Hotels & Resorts, Inc. (HST) and Ryman Hospitality Properties, Inc. (RHP) also focus on upscale hotels, while others like STAG Industrial, Inc. (STAG) and EPR Properties (EPR) operate in different REIT segments. Apple Hospitality's focus on rooms-focused hotels differentiates it from full-service hotel REITs.

Who Are APLE's Key Customers?

• Business travelers seeking convenient and comfortable accommodations.
• Leisure travelers looking for upscale hotel experiences.
• Group travelers attending conferences and events.
• Individuals and families seeking short-term stays.

Company Profile

Apple Hospitality REIT, Inc. operates in the REIT - Hotel & Motel industry within the Real Estate sector. It is headquartered in Richmond, US. The company is led by CEO Justin G. Knight. APLE has traded publicly since 2015.

Return on equity for Apple Hospitality REIT, Inc. stands at 5.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 3.5%, showing how much profit it generates from its asset base. APLE trades at a trailing price-to-earnings ratio of 21.05, below the Real Estate sector average of ~29.00x. Its free cash flow yield is 9.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.52 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 5.0%, the inverse of the P/E and a quick read on earnings relative to price.

APLE Valuation & Market Position

With a $3.69B market cap, Apple Hospitality REIT, Inc. sits in the mid-cap segment of the market. Analyst price targets span from $16.00 to $18.50, with a consensus of $16.90. At the current price of $15.63, that implies approximately 8% upside potential. Relative to its peer group, APLE's quantitative score of 97/100 is above the peer average of 70/100.

Quarterly Financial Performance: Apple Hospitality REIT, Inc.

Revenue for Apple Hospitality REIT, Inc. came in at $402.6M during Q2 FY2026, a 19.2% improvement versus the preceding quarter. The company recorded net income of $67.1M, with diluted EPS of $0.28. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this mid-cap Real Estate company. Across the four most recent quarters, APLE averaged $0.19 in diluted EPS.

Apple Hospitality REIT, Inc.'s Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 1.24 places it in the distress zone, a signal of elevated financial risk.

Apple Hospitality REIT, Inc. has beaten Wall Street's EPS estimate in 4 of its last 8 reported quarters — more hits than misses. Reported results have landed about 10.9% below estimates on average.

Over the past six months, Apple Hospitality REIT, Inc. insiders filed 22 SEC Form 4 transactions — 0 sales and 22 purchases. On net that is roughly 34K shares acquired (about $333K) — insiders putting money in tends to read as conviction.

APLE Financials

APLE Latest News

APLE Analyst Consensus

APLE MoonshotScore

APLE Real Estate Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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