Tessa Quinn
Apple Hospitality REIT Inc. (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. As of February 2025, Apple Hospitality owned 220 hotels with 29,688 guest rooms in 37 states and the District of Columbia. The company's portfolio includes hotels from well-known brands such as Marriott, Hilton, and Hyatt. With a high dividend yield, strong brand power, a healthy balance sheet, and high-quality assets, Apple Hospitality REIT has been considered an attractive investment opportunity. However, it is important to consider the potential risks, such as the impact of economic downturns and fluctuations in the stock market. In this paragraph, we will explore the key factors influencing whether Apple Hospitality REIT is a good investment and provide insights into its performance, growth prospects, and potential risks.
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What You'll Learn
Apple Hospitality REIT's stock price
Apple Hospitality REIT Inc. (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. As of February 2025, Apple Hospitality owned 220 hotels with 29,688 guest rooms in 37 states and the District of Columbia. Its portfolio includes 100 Marriott-branded hotels, 119 Hilton-branded hotels, and five Hyatt-branded hotels.
As of May 2025, Apple Hospitality REIT's stock price has been fluctuating. It gained 1.12% on May 9, rising from $11.61 to $11.74, marking three consecutive days of gains. However, the stock price has experienced a loss of 1.26% over the last two weeks.
Apple Hospitality REIT currently has a dividend yield of around 7.9% to 9.1%, making it attractive to income investors. The company pays dividends monthly, and its healthy balance sheet supports this.
Analysts have differing opinions on whether Apple Hospitality REIT is a good investment. Some highlight the company's strong brand power, healthy balance sheet, high-quality assets, and strategic capital allocation as positive factors. On the other hand, others note that the stock has a general sell signal, and its performance in a recession is uncertain.
When considering investing in Apple Hospitality REIT, it is essential to analyze various factors, including financial ratios, income statements, and recent stock movements. Tools like AAII's A+ Investor can assist in evaluating these aspects and making more informed investment decisions.
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Apple Hospitality REIT's growth potential
Apple Hospitality REIT Inc. (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. As of February 2025, Apple Hospitality owned 220 hotels with 29,688 guest rooms in 37 states and the District of Columbia.
APLE has a strong brand presence, excellent locations, a strong balance sheet, a franchising model, and an emphasis on value. These factors contribute to its potential for growth and ability to outperform its peers in the industry. The company's portfolio includes 100 Marriott-branded hotels, 119 Hilton-branded hotels, and five Hyatt-branded hotels.
Apple Hospitality REIT has demonstrated a strategic approach to capital allocation and portfolio management. In 2024, the company invested $48 million in capital expenditures and planned to spend between $75 million and $85 million on major renovations at about 20 of its hotels. This commitment to reinvestment is crucial for maintaining competitiveness and driving EBITDA growth.
Apple Hospitality REIT's trailing 12-month revenue is $1.4 billion with a 15.0% profit margin. Year-over-year quarterly sales growth was 6.6%. The company's revenue has grown at a compound annual growth rate (CAGR) of 7%, while its net income has increased at a CAGR of 17% over the past ten years.
Despite short-term fluctuations and the challenges posed by the COVID-19 pandemic, Apple Hospitality REIT has shown resilience and potential for growth. The company's strong fundamentals, strategic investments, and focus on driving EBITDA growth position it well for future expansion.
In summary, Apple Hospitality REIT's growth potential is underpinned by its diverse and strategic portfolio, strong financial metrics, and commitment to reinvestment. While past performance does not guarantee future results, Apple Hospitality REIT's trajectory suggests a positive outlook for long-term investors.
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Apple Hospitality REIT's value score
Apple Hospitality REIT Inc. (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. As of February 2025, Apple Hospitality owned 220 hotels with 29,688 guest rooms in 37 states and the District of Columbia.
Apple Hospitality REIT currently has a Value Score of 70, which is considered a "good value". The Value Score is the percentile rank of the average of the percentile ranks of various financial ratios, including the price-to-sales ratio, price-earnings ratio, and shareholder yield. Stocks with a Value Score from 81 to 100 are considered "deep value", while those with a score between 61 and 80 are considered "good value".
Apple Hospitality REIT's price-earnings ratio is 12.5, and its trailing 12-month revenue is $1.4 billion with a 15.0% profit margin. The company's dividend yield is also attractive, with a current yield of 7.9% and monthly dividend payouts. In addition, Apple Hospitality has a strong balance sheet, low debt-to-equity, and plenty of liquidity.
However, it is important to note that Apple Hospitality REIT's stock price has been volatile, with recent gains and losses. The company's stock tends to have controlled movements and low risk, but there have been early warnings of possible changes, such as falling volume on higher prices.
Overall, Apple Hospitality REIT is considered a good investment by some, with strong brand power, healthy balance sheet, and high-quality assets. The company has the potential to increase its dividends and is well-positioned for future growth. However, it may not be very recession-resistant, and there are concerns about its performance during challenging transaction markets.
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Apple Hospitality REIT's dividend yield
Apple Hospitality REIT Inc. (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. As of February 2025, Apple Hospitality owned 220 hotels with 29,688 guest rooms in 37 states and the District of Columbia.
APLE pays a monthly dividend, which is attractive to many income investors. In 2016, the company increased its annualised dividend substantially by 50%, from a $0.80 rate to a $1.20 rate. However, in the following years, the dividend remained at the same rate until 2020 when the COVID-19 pandemic forced the company to cut its dividend and freeze it at a $0.30 rate for the year. The company resumed dividends in 2021, and currently pays a $0.08 monthly dividend, which equates to $0.96 per share annually. The company's healthy balance sheet, low debt-to-equity, liquidity, and well-laddered debt maturity profile support the dividend. With an expected 2025 dividend payout ratio of approximately 61% in terms of FFO, the dividend is considered secure, although a steep recession could put it at risk.
As of April 2025, Apple Hospitality REIT had a dividend yield of 7.9%, which is considered high. As of November 2024, the company had a 9.1% dividend yield. The high current yield and monthly dividend payouts make APLE an appealing stock for income investors. Apple Hospitality REIT has some of the lowest debt-to-equity in the sector, and its dividend payout ratio is relatively low. The company's AFFO per share is expected to grow over the next five years, and it has the potential to start increasing its dividends.
Apple Hospitality REIT currently has a Zacks Rank of #1 or #2, indicating a Strong Buy or Buy recommendation. It also has a Style Score of "A" or "B", which is the highest probability of success for investors. The company's Value Score is 70, which is considered "good value". Apple Hospitality REIT has a market capitalisation of $2.7 billion, a price-earnings ratio of 12.5, and a trailing 12-month revenue of $1.4 billion with a 15.0% profit margin. Analysts expect adjusted earnings to reach $0.813 per share for the current fiscal year.
Overall, Apple Hospitality REIT appears to be a good investment, with a high dividend yield, strong financial metrics, and a positive outlook for growth. However, it is important to note that the company's stock has experienced recent volatility, and there may be some early warning signs of a downward trend. Additionally, the hospitality industry was hit hard by the coronavirus pandemic, and Apple Hospitality REIT may not be very recession-resistant. Therefore, investors should carefully consider their risk tolerance and conduct thorough research before making any investment decisions.
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Apple Hospitality REIT's financial health
Apple Hospitality REIT Inc. (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. As of February 2025, Apple REIT owned 220 hotels with 29,688 guest rooms in 37 states and the District of Columbia.
The financial health of Apple Hospitality REIT looks promising. As of April 7, 2025, the company had a $2.7 billion market capitalization, placing it in the 65th percentile of companies in the Hotel & Resort REITs industry. Apple Hospitality REIT's trailing 12-month revenue is $1.4 billion, with a 15.0% profit margin. Year-over-year quarterly sales growth was recently reported as 6.6%. Analysts expect adjusted earnings to reach $0.813 per share for the current fiscal year.
Apple Hospitality REIT has a dividend yield of 7.9% to 9.1%, which is considered high and attractive to income investors. The company has a healthy balance sheet, low debt-to-equity, ample liquidity, and a well-laddered debt maturity profile. Its dividend is considered secure, although a severe recession could put it at risk.
In terms of stock price, Apple Hospitality REIT has seen recent gains. On May 9, 2025, the stock price increased by 1.12%, rising from $11.61 to $11.74. However, the stock has experienced fluctuations, and there was a 1.26% loss over the previous two weeks. The stock tends to have controlled movements, and the risk is generally considered low.
Apple Hospitality REIT has demonstrated a strategic approach to capital allocation and portfolio management. They have invested significantly in capital expenditures and renovations, which they believe are crucial for maintaining competitiveness and driving growth. The company has a strong brand presence, excellent locations, and a franchising model, positioning it well for future growth and potentially making it more resilient during a recession.
In summary, Apple Hospitality REIT exhibits strong financial health, with solid revenue, profit margins, and dividend yields. Its strategic investments and competitive advantages bode well for its financial prospects. However, it is important to note that the hospitality industry, including REITs, was significantly impacted by the COVID-19 pandemic, and there may be lingering effects.
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Frequently asked questions
Apple Hospitality REIT, Inc. (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 REIT has a strong portfolio, strategic capital allocation, and ongoing renovations, positioning it for future growth. It has a $2.7 billion market capitalization and a 15.0% profit margin. Its stock price has been fluctuating, with a recent upward trend, and it currently has a 9.1% dividend yield.
Apple Hospitality REIT is considered one of the most undervalued stocks in the hotel industry, and it has a buy signal from the short-term moving average. However, the long-term average holds a general sell signal. Its stock is recommended for investors seeking high dividend yields and those interested in the hotel industry's rebound from the COVID-19 pandemic.
Apple Hospitality REIT is not very recession-resistant, and a steep recession could put its dividend at risk. The company has also been affected by a challenging transactions market, including the government travel pullback.
