Set Long-Term Expectations for Apple Hospitality REIT Despite Short-Term Vulnerabilities

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Apple ($NYSE:APLE) Hospitality REIT (AHRT) is one of the leading hotels and hospitality-focused real estate investment trusts in the United States. The company invests in upscale and midscale hotels, resorts and other related real estate assets. As with any asset class, investors should set long-term expectations for AHRT despite any short-term vulnerabilities. Hotel REITs such as AHRT are particularly vulnerable to unexpected occurrences like the pandemic of 2020. Despite such risks, investors can benefit from AHRT’s ability to adjust daily rates to mitigate inflationary pressures. Moreover, AHRT has an established track record of providing healthy dividends and long-term capital appreciation to its shareholders. In addition to their ability to adjust daily rates, AHRT has a diverse portfolio of hotels in locations across the country.

This gives them the ability to benefit from the increased demand for leisure and business travel in key markets. Furthermore, AHRT has taken steps to reduce its exposure to certain areas in order to better manage its risk profile. It is important for investors to remember that AHRT is well-positioned to benefit from any upside potential in the hospitality market that may arise in the future. The company is well-diversified across multiple business segments and regions and is able to adjust its rates quickly in response to changes in the market. With its safe dividend and long-term capital appreciation potential, AHRT is an attractive option for investors who are looking to benefit from the long-term prospects of the hospitality sector.

Market Price

Apple Hospitality REIT (AHREIT) has recently seen some volatility in its stock price, with Tuesday seeing the stock open at $17.5 and closing at $17.6, up by 0.2% from prior closing price of 17.6. AHREIT has a diverse portfolio of hotel properties spread across the US, allowing it to weather downturns in specific regions or sectors. Furthermore, its diversified portfolio makes it less reliant on any one property or hotel chain for revenue. As such, investors can expect AHREIT to remain stable in the long-term, as it is able to take advantage of rising demand in certain areas, while staying resilient to downturns in others.

Additionally, AHREIT has a strong balance sheet which provides stability and allows the company to take advantage of opportunities as they arise. Moreover, AHREIT is well-positioned to take advantage of the growth in leisure travel as consumers become more comfortable with venturing out. Given all of these factors, it is easy to see why investors should be looking towards the long-term outlook for AHREIT despite any short-term vulnerabilities. The company is well-positioned for long-term success, with a diversified portfolio, a strong balance sheet, and ample opportunities for growth. With that in mind, investors should consider setting their long-term expectations for AHREIT accordingly. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for APLE. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for APLE. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for APLE. More…

Key Ratios Snapshot

Some of the financial key ratios for APLE are shown below. More…

Analysis

GoodWhale has undertaken an analysis of APPLE HOSPITALITY REIT’s financial and business health and has assigned it a low risk rating. This suggests that investing in APPLE HOSPITALITY REIT could be a safe investment with minimal risk involved. GoodWhale’s analysis is based on key aspects such as liquidity, leverage, and profitability. However, GoodWhale has detected one risk warning in the balance sheet and encourages potential investors to register as a user to get more information on this warning. GoodWhale’s comprehensive assessment of APPLE HOSPITALITY REIT ensures that investors have detailed information on the company’s financial well-being before making an investment. The risk rating indicates the amount of risk that is associated with the company’s financial stability and operations. As such, by understanding the risk rating of APPLE HOSPITALITY REIT, potential investors can make an informed decision about whether investing in this company is suitable for them. Overall, GoodWhale provides an invaluable service to potential investors by providing detailed analyses of companies such as APPLE HOSPITALITY REIT so that investors can make better informed decisions about their investments. With the help of GoodWhale, investors can assess the risk associated with a company and make the most appropriate decision for their individual financial needs. More…

Peers

The company’s competitors include Sunstone Hotel Investors Inc, Braemar Hotels & Resorts Inc, and CDL Hospitality Trusts.

– Sunstone Hotel Investors Inc ($NYSE:SHO)

Stone Hotel Investors Inc is a real estate investment trust that invests in hotel properties. The company’s portfolio includes properties in the United States, Canada, and Europe. As of 2022, Stone Hotel Investors Inc had a market cap of 2.28 billion. The company’s primary business is owning and operating hotel properties.

– Braemar Hotels & Resorts Inc ($NYSE:BHR)

Braemar Hotels & Resorts Inc. is a publicly traded real estate investment trust that owns and operates upscale full-service hotels and resorts, primarily in the United States. The company was founded in 1993 and is headquartered in Dallas, Texas. As of December 31, 2020, Braemar’s portfolio consisted of 36 hotels and resorts with a total of 11,917 guest rooms.

– CDL Hospitality Trusts ($SGX:J85)

CDL Hospitality Trusts is a hospitality real estate investment trust that owns a portfolio of hotels and resorts in Asia Pacific. The company’s market cap is $1.41 billion as of 2022. CDL Hospitality Trusts is headquartered in Singapore.

Summary

Investors interested in Apple Hospitality REIT should be aware of the company’s short-term vulnerabilities and focus on setting long-term expectations. Apple Hospitality REIT owns and operates a diverse portfolio of hotels and resorts located in the United States. The company is exposed to several key risks including the effects of the pandemic, changes in industry dynamics, and sensitivity to general economic conditions. As such, investors should set realistic expectations and account for potential volatility when evaluating the stock.