One-glance verdict
Undervalued
$26.46 our estimate vs market $18.42
Wall Street consensus: $17.78 (-32.8% lower than our fair-value estimate)
30% below our estimate, below the bear case
Fundamentals snapshot
Apple Hospitality REIT, Inc.
APLE · NYQ · Real Estate · REIT - Hotel & Motel
Current price
$18.42
52-week range
$11.22 - $18.98
Market cap
$4.35B
Balance sheet
Stretched
3.07x Stretched
Net debt $1.59B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 2.0% last year.
- Reward Returns 5.5% on equity, ahead of 66% of its peers.
- Risk Stock trades 24.6% above its 5-year average P/E.
- Risk Net debt grew 11.3% over 3 years.
What this company does
Apple Hospitality REIT, Inc.
Apple Hospitality REIT, Inc. owns a bunch of hotels across the United States, from big brands like Hilton and Marriott to independent places. The money mainly comes from people paying to stay in these hotel rooms, and this matters because it shows how well the company is doing at filling its rooms and earning income from them.
How the company got here
Apple Hospitality REIT was established in 2007, but its roots in the lodging industry go back over 25 years through its predecessor companies. It was formed with a clear strategy: to own hotels that people want to stay in, spread across many different parts of the U.S. and partnered with top hotel brands and management teams. This approach was designed to reduce the risks often associated with the hotel business and to perform well no matter the economic conditions. The company went public on the New York Stock Exchange in 2015, which helped increase its visibility within the investment community. Since then, it has focused on strategically buying and selling properties to maintain a high-quality portfolio and has consistently reinvested in its hotels to keep them attractive to guests.
What it actually does
Apple Hospitality REIT is a real estate investment trust, or REIT, that owns hotels. Think of it like owning a collection of apartment buildings, but instead of apartments, it owns hotel rooms. The company doesn't run the day-to-day operations of these hotels itself. Instead, it partners with major hotel brands like Marriott and Hilton, and these brands, along with third-party management companies, handle everything from checking guests in and out to cleaning rooms and managing staff. Apple Hospitality's main job is to own the physical hotel buildings and ensure they are well-maintained and appealing to travelers, generating income from the room rentals.
Hotel Ownership
This is the core of Apple Hospitality's business. The company owns a large portfolio of upscale hotels, primarily focused on providing rooms for guests. These hotels are located across the United States in urban, suburban, and popular leisure destinations. They operate under well-known brands such as Marriott (including Courtyard, Residence Inn, and Fairfield Inn) and Hilton (including Hampton Inn, Hilton Garden Inn, and Homewood Suites). The revenue generated from renting out these hotel rooms is the company's primary source of income. This segment represents the entirety of Apple Hospitality's business operations.
What management is betting on now
Apple Hospitality's management is focused on continuing to own a diverse collection of upscale hotels that appeal to a wide range of travelers, whether for business or leisure. They aim to achieve this by partnering with strong, recognizable hotel brands and working with top-notch management companies. A key part of their strategy involves consistently reinvesting in their properties to ensure they remain attractive and competitive. They also prioritize maintaining a strong financial position with low debt, which gives them flexibility to make smart investments and navigate any economic ups and downs. This disciplined approach to capital allocation and portfolio management is intended to maximize returns for shareholders over the long term.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$113.61M
FY2024 Q4
$64.61M
FY2025 Q1
$29.54M
FY2025 Q2
$96.20M
FY2025 Q3
$109.04M
FY2025 Q4
$47.24M
FY2026 Q1
$21.36M
FY2026 Q2
$112.66M
Revenue
$402.55M
Net income
$67.08M
Diluted EPS
0.28
Operating cash flow
$124.96M
Free cash flow
$112.66M
Fetching…
Sources
Revenue
$337.74M
Net income
$27.70M
Diluted EPS
0.12
Operating cash flow
$48.86M
Free cash flow
$21.36M
Fetching…
Sources
Revenue
$326.44M
Net income
$29.61M
Diluted EPS
0.13
Operating cash flow
$85.84M
Free cash flow
$47.24M
Fetching…
Sources
Revenue
$373.88M
Net income
$50.88M
Diluted EPS
0.21
Operating cash flow
$126.44M
Free cash flow
$109.04M
Fetching…
Sources
Revenue
$384.37M
Net income
$63.65M
Diluted EPS
0.27
Operating cash flow
$108.80M
Free cash flow
$96.20M
Fetching…
Sources
Revenue
$327.70M
Net income
$31.22M
Diluted EPS
0.13
Operating cash flow
$49.14M
Free cash flow
$29.54M
Fetching…
Sources
Revenue
$333.04M
Net income
$29.82M
Diluted EPS
0.13
Operating cash flow
$95.20M
Free cash flow
$64.61M
Fetching…
Sources
Revenue
$378.84M
Net income
$56.27M
Diluted EPS
0.23
Operating cash flow
$128.19M
Free cash flow
$113.61M
Fetching…
Sources
Is it cheap or expensive?
Fair value $26.46 vs current price $18.42
Wall Street consensus is the average analyst price target: $17.78 (-32.8% lower than our fair-value estimate).
Our most-likely fair value is $26.46 a share — about 43.7% above today's price of $18.42, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $1.6B. Interest coverage 3.1x.
Net debt
$1.59B
Interest coverage
3.07x
Apple Hospitality REIT, Inc.'s profit covers its interest bill about 3.1 times over. which is stronger than every peer shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
APLE
BASELINE
Apple Hospitality REIT, Inc.
Total debt $1.61B Interest coverage 3.07x This is the baseline the peer rows are being compared against.
Total debt $4.10B Interest coverage 0.85x -72% vs APLE Carries about 3.6x less debt cushion than APLE.
Total debt $1.20B Interest coverage 2.66x -13% vs APLE Has roughly the same debt cushion as APLE.
Total debt $975.03M Interest coverage 1.54x -50% vs APLE Carries about 2.0x less debt cushion than APLE.
Total debt $2.46B Interest coverage 0.74x -76% vs APLE Carries about 4.1x less debt cushion than APLE.
Total debt $2.81B Interest coverage 1.21x -61% vs APLE Carries about 2.5x less debt cushion than APLE.
What you should know
The case for and against APLE
3 Rewards
2 Risks
Rewards
-
Revenue grew 2.0% last year.
-
Returns 5.5% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Stock trades 24.6% above its 5-year average P/E.
-
Net debt grew 11.3% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
24.89x
Forward P/E
24.66x
P/B
1.38x
P/S
3.02x
EV/EBITDA
13.33x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
42.9%
Operating margin
22.4%
Net margin
12.2%
ROE
5.5%
ROA
3.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.51x
Current ratio
0.29x
Quick ratio
0.27x
Total debt
$1.61B
Total cash
$18.84M
Growth
How the business has been compounding
Revenue TTM
$1.44B
Revenue 5Y CAGR
10.9%
EPS TTM
0.74
EPS 5Y CAGR
5.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$386.11M
Free CF TTM
$282.02M
FCF margin
19.6%
Dividend
Shareholder payout
Yield
5.1%
Payout ratio
129.7%
Last ex-div date
2026-10-30