Apple Hospitality REIT, Inc. (APLE) AI Stock Analysis
APLE AI stock analysis summary
AI ResearchApple Hospitality REIT, Inc. (APLE) is a hospitality real estate investment trust operating 235 upscale, rooms-focused hotels across 34 states. Over the trailing twelve months, the company generated $1.44B in revenue with an operating margin of 22.4%. For FY2025, it delivered free cash flow of $282.8M and paid $240.4M in dividends.
- Market cap
- $4.03B
- Revenue (TTM)
- $1.44B
- P/E
- 23.0x fwd 23.5x
- 1Y return
- 59.1% S&P 500 16.8%
- Avg. target
- $17.28 1.3% vs last close
Bull case
- The stock offers a 5.63% forward dividend yield backed by a 33.0% payout ratio and 12 consecutive years of dividend distributions.
- Share price momentum delivered a 1-year return of 59.1%, outpacing the S&P 500 benchmark return of 16.8%.
- The balance sheet maintains conservative leverage, highlighted by a debt-to-equity ratio of 0.04 and net debt of $102.2M.
Bear case
- In FY2025, revenue fell 1.3% to $1.41B while gross margin compressed to 6.4% from 35.6% in FY2024.
- Analyst estimates indicate next fiscal year EPS will decline 4.8% to $0.74 on modest revenue growth of 2.1%.
- Short-term liquidity appears tight, evidenced by a current ratio of 0.09 and cash reserves of $10.2M as of June 30, 2026.
What Apple Hospitality REIT does
Apple Hospitality REIT, Inc. operates as a publicly traded real estate investment trust focused on upscale, rooms-focused hotels across the United States. Its portfolio comprises 235 hotels totaling over 30,000 guest rooms in 87 markets across 34 states. The company targets premium properties affiliated with prominent brands, including 104 Marriott-branded hotels, 126 Hilton-branded hotels, three Hyatt-branded hotels, and two independently operated hotels. Headquartered in Richmond, Virginia, Apple Hospitality REIT emphasizes operational excellence and portfolio enhancement through selective investments and strategic acquisitions.
Growth and profitability
Annual revenue expanded from $933.9M in FY2021 to $1.43B in FY2024 before revenue fell 1.3% to $1.41B in FY2025. Between FY2020 and FY2025, revenue increased at a 5-year CAGR of 18.6%. Operating margin reached 17.7% in FY2025, down from 20.5% in FY2024, while net income was $175.4M compared to $214.1M in the prior year. Over the trailing twelve months ending June 30, 2026, revenue stood at $1.44B with a profit margin of 12.2% and EPS of $0.74. For the latest quarter ending June 30, 2026, quarterly revenue grew 4.7% year-over-year, and quarterly earnings grew 4.6% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, Apple Hospitality REIT held $10.2M in cash and short-term investments against $112.4M in total debt, resulting in net debt of $102.2M. The company reported a current ratio of 0.09 and a debt-to-equity ratio of 0.04 alongside $3.14B in shareholders' equity. In FY2025, operating cash flow generated $370.2M and free cash flow reached $282.8M. Capital allocation for FY2025 included $87.4M in capital expenditures, $62.8M in share buybacks, and $240.4M in dividends paid.
Valuation and performance
At a share price of $17.05, Apple Hospitality REIT carries a market capitalization of $4.03B and an enterprise value of $5.34B. Its trailing P/E of 23.0x sits above the 21.6x median of its US-listed Real Estate peers, while its forward P/E of 23.5x matches the peer median of 23.5x. The company trades at an EV/EBITDA of 11.8x and a price-to-sales ratio of 2.8x, compared to peer medians of 14.7x and 3.7x, respectively. Over the past year, the stock returned 59.1%, outperforming the 16.8% return for SPY, though its 5-year return of 44.0% trailed SPY's 83.0%.
APLE dividend
Apple Hospitality REIT pays a monthly dividend with an annualized forward payout of $0.96 per share, representing a 5.63% dividend yield and a payout ratio of 33.0%. The company has paid consecutive dividends for 12 years and achieved a 5-year annualized dividend growth rate of 26.2%. Its last ex-dividend date was September 30, 2026.
What analysts expect
Wall Street coverage consists of 3 Strong Buy ratings and 8 Hold ratings, with no Buy, Sell, or Strong Sell recommendations. The mean price target is $17.28, representing a 1.3% premium over the last close of $17.05. For the fiscal year ending December 31, 2026, consensus estimates anticipate revenue of $1.46B and EPS of $0.77. The company beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 5, 2026.
Key risks and what to watch
- Cash and short-term investments of $10.2M leave a narrow buffer relative to $112.4M in total debt as of June 30, 2026.
- Short interest represents 12.9% of the float, pointing to elevated skepticism in the market.
- Net income dropped from $214.1M in FY2024 to $175.4M in FY2025, reflecting sensitivity to margin contractions.
- Analysts project next fiscal year earnings to decline 4.8% alongside subdued top-line expansion of 2.1%.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this APLE AI stock analysis
This page is an AI-written research summary of Apple Hospitality REIT, Inc. (APLE). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: APLE income statement, APLE balance sheet, APLE key metrics, APLE analyst forecast, APLE chart. See the APLE stock overview for the latest quote and news.
APLE AI stock analysis FAQ
What is Apple Hospitality REIT's dividend yield and payment schedule?
Apple Hospitality REIT pays dividends on a monthly schedule with an annualized forward payout of $0.96 per share, providing a 5.63% yield as of October 16, 2026. The REIT has maintained consecutive payments for 12 years and has a payout ratio of 33.0%.
How did Apple Hospitality REIT perform in its latest financial quarter?
For the quarter ending June 30, 2026, the company posted quarterly revenue growth of 4.7% year-over-year. Quarterly earnings grew 4.6% year-over-year during the same period.
What is the consensus analyst target price for APLE?
The mean analyst price target is $17.28, which represents a 1.3% upside compared to the closing price of $17.05 on October 16, 2026.
What brands are included in Apple Hospitality REIT's property portfolio?
The portfolio consists of 235 hotels and over 30,000 rooms, including 126 Hilton-branded hotels, 104 Marriott-branded hotels, three Hyatt-branded hotels, and two independent hotels.