
Overview
Hotel REIT's 2025 net income beat analysts' expectations
Comparable Hotels RevPAR for 2025 fell 1.6% yr/yr
Company acquired two hotels and sold seven in 2025
Outlook
Company expects 2026 net income between $133 mln and $160 mln
Apple Hospitality anticipates 2026 RevPAR change between -1% and 1%
Company forecasts 2026 Adjusted EBITDAre between $424 mln and $447 mln
Result Drivers
GOVERNMENT TRAVEL IMPACT - Policy uncertainty and reduced government travel affected demand, leading to a decline in occupancy and RevPAR
STRATEGIC ADJUSTMENTS - Co adjusted strategy to optimize business mix, focusing on group business to bolster market share
PORTFOLIO OPTIMIZATION - Co sold seven hotels and acquired two to enhance portfolio and maintain balance sheet strength
Company press release: ID:nBw9XGrp1a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY EPS |
| $0.74 |
|
FY Net Income | Beat | $175.36 mln | $167.93 mln (3 Analysts) |
FY Hotels Adjusted EBITDA |
| $474.23 mln |
|
FY Modified FFO |
| $361.13 mln |
|
FY Hotels Adjusted EBITDA Margin |
| 34.30% |
|
FY Hotels Adjusted RevPAR |
| $117.95 |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialized reits peer group is "buy."
Wall Street's median 12-month price target for Apple Hospitality REIT Inc is $13.00, about 5.3% above its February 20 closing price of $12.35
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 15 three months ago
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