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Apple Hospitality REIT (APLE)
NYSE:APLE
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Apple Hospitality REIT
(NYSE:APLE)
62Neutral
Positive Factors
Financial performance
The company's Q4 performance exceeded expectations due to lower hotel operating expenses and interest expense.
Investment attractiveness
Apple Hospitality's dividend yield is above peers, making it an attractive option for investors seeking income.
Portfolio and market positioning
Apple Hospitality is the largest pure-play select-service lodging REIT with a high quality and diversified portfolio.
Negative Factors
Expense and margin pressure
Higher costs are expected to lead to a decline in margins for APLE.
Guidance performance
APLE's 2025 EBITDA outlook fell short of consensus expectations.
Market exposure
APLE's group exposure of 15% provides less visibility, and while its diversity is positive, it is more of a proxy for the broader market and less likely to benefit from market-specific trends.
Apple Hospitality REIT (APLE) vs. S&P 500 (SPY)
Market Cap
$2.79B
Dividend Yield8.18%
Average Volume (3M)3.09M
Price to Earnings (P/E)14.8
Beta (1Y)0.83
Revenue Growth4.98%
EPS Growth-7.08%
CountryUS
Employees65
SectorReal Estate
Sector Strength75
IndustryREIT - Hotel & Motel
Share Statistics
EPS (TTM)0.13
Shares Outstanding237,914,340
10 Day Avg. Volume2,667,992
30 Day Avg. Volume3,085,652
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.87
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit4.87
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$14.40Price Target Upside25.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Apple Hospitality REIT Business Overview & Revenue Model
Company DescriptionApple Hospitality REIT, Inc. (APLE) is a publicly traded real estate investment trust that specializes in the ownership of high-quality, upscale hotels across the United States. The company is recognized for its strategic investment in hotels affiliated with well-established brands such as Hilton, Marriott, and Hyatt, focusing on select-service, extended-stay, and full-service hotels. Apple Hospitality REIT aims to generate attractive returns for its shareholders by maintaining a diversified portfolio of properties that deliver consistent performance.
How the Company Makes MoneyApple Hospitality REIT makes money primarily through the ownership and operation of its hotel properties. The company generates revenue by leasing its hotel rooms and facilities to guests, which includes both leisure and business travelers. Revenue streams include room rentals, food and beverage sales, and other hotel services. Additionally, the company benefits from strategic partnerships with major hotel brands like Hilton, Marriott, and Hyatt, which help drive occupancy rates and enhance property value. Apple Hospitality REIT's earnings are significantly influenced by the performance of the hospitality industry, which can be affected by economic conditions, travel trends, and seasonal factors.
Apple Hospitality REIT Financial Statement Overview
Summary
Apple Hospitality REIT shows strong revenue growth and improved profitability margins, alongside stable cash flows and effective debt management. However, a slight decline in total revenue in the TTM period raises concerns.Income Statement
The company shows strong revenue growth over the periods, with an impressive turnaround in net income since 2020. Gross profit margin and EBIT margin have improved significantly, reflecting effective cost management. However, the slight decline in total revenue in the TTM period compared to the previous annual period is a concern.75
Positive
Balance Sheet
The balance sheet is stable with a declining debt-to-equity ratio, indicating improved leverage management. The equity ratio is strong, providing a solid cushion for liabilities. However, the total assets have remained fairly constant, suggesting limited asset growth.70
Positive
Cash Flow
Cash flow metrics are strong with consistent operating cash flows and improving free cash flow, indicating efficient operational performance. The free cash flow to net income ratio is high, reflecting effective cash generation relative to profits. The variability in investing cash flow indicates potential strategic investments.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.43B | 1.34B | 1.24B | 933.87M | 601.88M | Gross Profit |
| 1.07B | 483.77M | 455.03M | 319.71M | 121.36M | EBIT |
| 292.76M | 247.48M | 206.48M | 87.04M | -107.80M | EBITDA |
| 483.36M | 430.72M | 412.56M | 278.67M | 97.75M | Net Income Common Stockholders |
| 214.06M | 177.49M | 144.81M | 18.83M | -173.21M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 10.25M | 10.29M | 4.08M | 3.28M | 5.56M | Total Assets |
| 4.97B | 4.94B | 4.77B | 4.79B | 4.83B | Total Debt |
| 1.58B | 1.48B | 1.48B | 1.55B | 1.70B | Net Debt |
| 1.57B | 1.47B | 1.47B | 1.55B | 1.70B | Total Liabilities |
| 1.70B | 1.61B | 1.59B | 1.64B | 1.80B | Stockholders Equity |
| 3.27B | 3.32B | 3.18B | 3.15B | 3.03B |
| Cash Flow | Free Cash Flow | |||
| 325.01M | 326.98M | 309.07M | 199.25M | -21.83M | Operating Cash Flow |
| 405.35M | 399.04M | 368.45M | 217.56M | 26.73M | Investing Cash Flow |
| -215.71M | -364.63M | -135.91M | -150.68M | -82.26M | Financing Cash Flow |
| -189.19M | -34.31M | -228.97M | -61.30M | 55.24M |
Apple Hospitality REIT Technical Analysis
Negative
11.49
Price Trends
12.71
Negative
13.86
Negative
14.06
Negative
Market Momentum
-0.26
Negative
38.79
Neutral
15.37
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APLE, the sentiment is Negative. The current price of 11.49 is below the 20-day moving average (MA) of 11.58, below the 50-day MA of 12.71, and below the 200-day MA of 14.06, indicating a bearish trend. The MACD of -0.26 indicates Negative momentum. The RSI at 38.79 is Neutral, neither overbought nor oversold. The STOCH value of 15.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $2.07B | 10.16 | 3.49% | 9.75% | -3.67% | 122.68% | |
64 Neutral | $1.60B | 38.62 | 3.22% | 2.23% | 3.73% | -44.49% | |
64 Neutral | $1.76B | 63.72 | 2.01% | 4.12% | -8.18% | -85.42% | |
64 Neutral | $1.08B | ― | -0.33% | 0.44% | 2.18% | 56.00% | |
62 Neutral | $2.79B | 14.80 | 6.50% | 8.18% | 4.98% | -7.08% | |
61 Neutral | $1.11B | 26.53 | 2.94% | 7.58% | 3.31% | -15.16% | |
60 Neutral | $2.79B | 11.29 | 0.22% | 8508.24% | 6.33% | -14.20% |
* Real Estate Sector Average
Performance Comparison
APLE
Apple Hospitality REIT
11.49
-2.31
-16.74%
DRH
Diamondrock
7.59
-0.86
-10.18%
SHO
Sunstone Hotel
8.73
-1.28
-12.79%
PEB
Pebblebrook Hotel
9.08
-5.43
-37.42%
RLJ
RLJ Lodging
7.03
-3.05
-30.26%
PK
Park Hotels & Resorts
10.15
-4.64
-31.37%
Apple Hospitality REIT Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: -1.96%|
Next Earnings Date:Aug 11, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment with strategic asset management and strong dividend yield as positive aspects. However, these are counterbalanced by declines in RevPAR, reduced guidance, and economic challenges, leading to a balanced outlook.Q1-2025 Updates
Positive Updates
Dividend Distribution
During Q1 2025, Apple Hospitality REIT paid a total of $70 million in distributions, including a special cash distribution of $0.05 per share, with an annualized yield of approximately 8.2%.
Strategic Asset Management
Completed the sale of two hotels for $21 million, with additional transactions in progress, and repurchased $32 million of common shares, highlighting effective portfolio management.
Resilient Portfolio amidst Economic Uncertainty
Despite a slight pullback, the portfolio remains strong with limited supply growth in markets, suggesting a favorable risk profile and potential upside in economic recovery.
Negative Updates
Decline in RevPAR
Q1 2025 RevPAR declined 0.5% compared to Q1 2024, with occupancy down 1.5%, indicating challenges in maintaining prior-year performance levels.
Reduced Full-Year Guidance
The company revised its full-year guidance downwards, reflecting tempered expectations amid current demand and expense trends, with adjusted EBITDAre reduced by $14 million.
Macroeconomic and Weather Challenges
Macroeconomic uncertainty and adverse weather conditions negatively impacted Q1 performance, particularly in the Sunbelt region.
Company Guidance
During the Apple Hospitality REIT first quarter 2025 earnings call, the company provided several key metrics indicating a tempered outlook for the year. Comparable hotels RevPAR was reported at $111, a 0.5% decline from the previous year, with occupancy dropping by 1.5% to 71%, while ADR increased by 1% to $157. The company's adjusted EBITDAre was $95 million, down approximately 5% compared to the first quarter of 2024, and modified funds from operations stood at approximately $76 million, marking a 9% decrease. For the full year 2025, Apple Hospitality REIT adjusted its guidance, expecting a net income range of $167 million to $195 million, with comparable hotels RevPAR change projected between negative 1% and 1%. The adjusted EBITDAre is anticipated to be between $433 million and $457 million, reflecting a decrease from previous guidance due to the performance in the first quarter and anticipated trends in demand and expenses. Despite these challenges, the company highlighted the stability of its business, favorable supply-demand dynamics, and a strategy to enhance long-term shareholder value through strategic asset sales and share repurchases.Apple Hospitality REIT Corporate Events
Business Operations and StrategyFinancial Disclosures
Apple Hospitality REIT Releases April 2025 Investor Update
Neutral
Apr 7, 2025
On April 7, 2025, Apple Hospitality REIT released an updated investor presentation on its website, detailing operational statistics for March 2025. The company reported a slight decline in RevPAR for the first quarter of 2025 compared to the same period in 2024, attributed to weather-related travel disruptions in January and February. The presentation highlights Apple Hospitality’s continued focus on strategic acquisitions, efficient operations, and maintaining a strong financial position, which are key to its industry positioning and stakeholder interests.
Spark’s Take on APLE Stock
According to Spark, TipRanks’ AI Analyst, APLE is a Outperform.
Apple Hospitality REIT’s overall stock score reflects a strong financial performance with solid profitability and cash flow improvements. The company benefits from a robust balance sheet and high dividend yield, making it attractive for income investors. However, technical indicators suggest a bearish trend, with potential for a short-term rebound due to oversold conditions. The earnings call confirmed positive financial metrics and strategic positioning, despite some challenges in specific markets and rising expenses.
To see Spark’s full report on APLE stock, click here.
Business Operations and StrategyFinancial Disclosures
Apple Hospitality REIT Releases Updated Investor Presentation
Positive
Feb 28, 2025
On February 28, 2025, Apple Hospitality REIT released an updated investor presentation on its website, detailing operating statistics for January and February 2025. The presentation highlights the company’s strong financial performance in 2024, including a total revenue of $1.4 billion and a net income per share of $0.89. The company also reported a 21.3 percentage point total shareholder return outperformance compared to the MSCI US REIT Index for the 2021-2023 period. The announcement reflects Apple Hospitality’s strategic focus on upscale, rooms-focused hotels and its commitment to maintaining a strong, flexible balance sheet, which positions it well for future growth and stability in the real estate investment sector.
Business Operations and StrategyFinancial Disclosures
Apple Hospitality REIT Updates Investor Presentation
Positive
Feb 25, 2025
On February 25, 2025, Apple Hospitality REIT updated its investor presentation on its website, providing operating statistics for January and February 2025. The company reported a 3% growth in Comparable Hotels RevPAR for Q4 2024 and a slight improvement for January 2025, indicating a positive trend in hotel performance. The presentation highlights the company’s strategic focus on upscale, rooms-focused hotels, efficient operations, and broad geographic diversification, positioning it well in the market.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.