Apple Hospitality REIT: A Lucrative Investment with Upside Potential

Apple Hospitality REIT (NYSE:APLE) owns upscale hotels in the US, with 221 properties and a focus on Marriott and Hilton-branded hotels. The company offers monthly dividends and has significant upside potential. APLE's financials are strong, with a solid track record of stable earnings and a growing portfolio of hotels.

Apple Hospitality REIT, Inc. (NYSE: APLE) recently reported its second quarter and six-month 2025 earnings, showcasing a decrease in revenue and net income compared to the previous year. The company's quarterly revenue stood at US$384.37 million, while net income was at US$63.65 million [1].

The decline in earnings per share indicates increased pressure on profitability, raising questions about the company’s ability to maintain its previous financial performance. With net income dropping this quarter, investors are assessing how weaker profitability could influence Apple Hospitality REIT’s broader investment outlook.

Despite the lower earnings, the company's acquisition of the Homewood Suites Tampa-Brandon for US$18.8 million stands out. This addition could strengthen property-level performance, particularly in markets that align with APLE’s focus on high-yield assets. However, ongoing profitability will remain a priority as the company integrates new properties [1].

Apple Hospitality REIT's outlook forecasts $1.5 billion in revenue and $173.9 million in earnings by 2028. This assumes a 1.1% annual revenue growth but a $17.3 million decrease in earnings from the current $191.2 million [1].

Investors should consider the impact of weaker profit margins, especially as the company continues to expand its portfolio. Among recent announcements, the company's acquisition of the Homewood Suites Tampa-Brandon for US$18.8 million stands out. While earnings came in lower, this addition could strengthen property-level performance, especially in markets that align with APLE’s focus on high-yield assets, but ongoing profitability will remain a priority as the company integrates new properties [1].

References:
[1] https://simplywall.st/stocks/us/real-estate/nyse-aple/apple-hospitality-reit/news/the-bull-case-for-apple-hospitality-reit-aple-could-change-f-1