Update shared on 03 Dec 2025
Analysts have raised their price target on Apple Hospitality REIT by 1 percent to 13.00 dollars, citing slightly stronger long term revenue growth expectations that more than offset a modest trimming of projected profit margins and a marginal adjustment to the discount rate and future valuation multiples.
What's in the News
- Updated 2025 earnings guidance now calls for net income of 162 million to 175 million dollars, reflecting year to date performance and anticipated macroeconomic and government shutdown headwinds (Key Developments).
- Compared with prior 2025 guidance, the company is lowering projected net income by 5.5 million dollars and cutting Comparable Hotels RevPAR Change by 100 basis points, signaling softer top line expectations (Key Developments).
- Despite the lower revenue outlook, Apple Hospitality REIT is raising guidance for Comparable Hotels Adjusted Hotel EBITDA Margin by 20 basis points and increasing Adjusted EBITDAre by 0.3 million dollars, driven by cost controls, favorable insurance renewal, and lower G&A (Key Developments).
- Under its long running share repurchase program announced in April 2015, the company has bought back a total of 17,018,737 shares for 246.3 million dollars, including 469,993 shares repurchased between July 1 and October 31, 2025 for 5.04 million dollars, reducing the share count by about 7.48 percent (Key Developments).
Valuation Changes
- The fair value estimate has been maintained at 13.00 dollars per share, reflecting no change in the intrinsic value assessment.
- The discount rate has risen slightly from 8.17 percent to approximately 8.17 percent, indicating a marginally higher required return.
- Revenue growth has increased meaningfully from about 1.77 percent to roughly 2.50 percent, signaling improved long term top line expectations.
- Net profit margin has declined modestly from about 12.14 percent to roughly 11.80 percent, reflecting a slightly less favorable profitability outlook.
- The future P/E has edged up slightly from about 20.58x to approximately 20.71x, implying a modestly higher valuation multiple on forward earnings.
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