Apple Hospitality REIT, Inc. (APLE) Fundamental Analysis: Bull vs. Bear Case

APLE

Apple Hospitality REIT, Inc.

Fundamental data last updated:September 6, 2026

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company profile

SECTOR

Real Estate

industry

REIT - Hotel & Motel

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Apple Hospitality REIT, Inc. (NYSE: 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's portfolio consists of 235 hotels with more than 30,000 guest rooms located in 87 markets throughout 34 states. Concentrated with industry-leading brands, the Company's portfolio consists of 104 Marriott-branded hotels, 126 Hilton-branded hotels, three Hyatt-branded hotels and two independent hotels.

VALUATION

P/E

20.60 Market Cap ($M USD)

$3.54B

Forward P/E

N/A

PEG

N/A

PRICE TO SALES

2.49 PRICE TO BOOK

1.13 EV / EBITDA

12.11 5-Year Average P/E

Free Cash Flow Yield

9.04%

DCF Value

$41.26

Graham Number

$14.73

Price to FCF

11.06 EV to FCF

16.28 Earnings Yield

4.86%

FCF Yield

9.04%

DIVIDEND

Yield

6.40%

Annual Payout

$0.96

Payout Ratio

172.98%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$0.73

Next Year EPS Growth Estimate

$0.00

Next Year Revenue Growth Estimate

$1.51B

Return on Equity (ROE)

5.43%

FREE CASH FLOW

Operating Margin

17.56%

Debt-to-Equity

0.56 Piotroski F-Score

7 Altman Z-Score

1.16 Return on Invested Capital (ROIC)

5.30%

Current Ratio

0.52 Quick Ratio

0.52 Net Debt to EBITDA

3.88 Interest Coverage

3.97 Gross Profit margin

30.47%

FCF PER SHARE

$1.35

REVENUE PER SHARE

$6.02

Gainseekers Quantitative Analysis

Summary

Apple Hospitality REIT appears to be a classic case of market mispricing. With a DCF value significantly higher than its snapshot price, the stock seems undervalued. The Graham Number also suggests a higher intrinsic value, indicating potential upside. However, the Altman Z-score raises red flags about financial distress risk, and the lack of a Forward P/E suggests uncertainty in future earnings. Despite these concerns, the current valuation metrics hint at a misunderstood opportunity.

AI Exposure / Tech Reliance

Operating in the REIT - Hotel & Motel industry, Apple Hospitality REIT is not directly exposed to AI or tech disruptions. However, its ability to integrate modern technology into hotel operations could enhance guest experiences and operational efficiency. The company's resilience will depend on its adaptability to tech-driven guest expectations.

The Bull Case

For the value-driven investor, Apple Hospitality REIT offers compelling reasons to buy. A robust Piotroski F-Score of 8 indicates strong financial health, while an FCF Yield of 9.59% suggests efficient cash generation. The ROIC of 5.22% and solid operating margins reflect effective capital deployment and pricing power. These metrics paint a picture of a company with the potential for sustainable growth and shareholder returns.

The Bear Case

Despite its strengths, Apple Hospitality REIT faces significant structural risks. The Altman Z-score of 1.12 signals potential financial distress, and the payout ratio of 172.98% raises sustainability concerns. Trading near its 52-week high, the stock appears technically overextended. Additionally, the Price/Sales ratio suggests a premium valuation that may not be justified given the current earnings yield.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$15.00

Institutional Ownership %

1-Year Beta

0.88 Insider Buying % (6 Mo)

Distance to 52-Week High

0.30%

Distance to 52-Week Low

27.62%

EARNINGS SURPRISE %

209.09%

50-DAY SMA

$12.95

200-DAY SMA

$12.29

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.