Apple Hospitality REIT, Inc. (APLE) Stock Analysis

Apple Hospitality REIT owns and operates a geographically diversified portfolio of 216 upscale select-service and extended-stay hotels with 29,459 rooms across 83 metropolitan areas in 37 states and Washington, D.C. The portfolio is concentrated in globally recognized brands—114 Hilton, 96 Marriott, and five Hyatt properties—with one independent hotel. Its rooms-focused model produces more than 90% of revenue from room rentals and avoids much of the labor and fixed-cost burden of full-service hotels. Q2 2026 revenue increased 2.7% year over year to $402.55 million, while comparable RevPAR grew 5.3% to $136.17 and hotel EBITDA margin expanded 120 basis points to 38.1%. MFFO per share of $0.52 exceeded the $0.47 consensus estimate. Management raised 2026 comparable RevPAR growth guidance to 2.25%–4.25%, midpoint 3.25%, and Adjusted EBITDAre guidance to $453–$476 million. **Low leverage of 3.2x net debt/EBITDA, $612 million of liquidity, and no significant maturities until 2029 support the monthly dividend and downside resilience.** At approximately 10.8x forward MFFO, shares trade below the cited sector valuation, with a 5.6%–6.0% dividend yield. Near-term catalysts include improving business travel, July RevPAR growth above 5.5%, rate easing, and limited new supply.