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Apple Hospitality REIT (APLE): Valuation Check After Strong Q3 RevPAR and Occupancy Update

Simply Wall St·12/10/2025 12:24:16
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Apple Hospitality REIT (APLE) just refreshed investors on its November 2025 hotel performance, reporting third quarter RevPAR of $124 and 76% occupancy. Both figures were above industry averages, putting its long running share slump in sharper context.

See our latest analysis for Apple Hospitality REIT.

Yet the share price tells a more cautious story. An around 23% year to date share price return and roughly 23% one year total shareholder return are both in negative territory, leaving long term holders only modestly ahead over five years. Momentum still looks weak despite resilient hotel fundamentals.

If APLE’s mixed momentum has you comparing options, this could be a good moment to explore fast growing stocks with high insider ownership for other stocks where owners are backing faster growth with their own capital.

With RevPAR and occupancy outpacing peers, but the share price still lagging, is Apple Hospitality REIT quietly undervalued today, or are markets already pricing in its future cash flows and growth potential?

Most Popular Narrative: 10.6% Undervalued

With Apple Hospitality REIT last closing at 11.62 dollars against a 13.00 dollar narrative fair value, the gap raises questions about how cautious the market really is on its outlook.

The analysts have a consensus price target of $13.6 for Apple Hospitality REIT based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $15.0, and the most bearish reporting a price target of just $12.0.

Read the complete narrative.

Want to see what justifies a richer future earnings multiple despite only modest growth expectations and slightly softer margins? The narrative hinges on a finely balanced trade off between slow but steady revenue expansion, disciplined cost control, and a higher valuation multiple that still sits below many peers. Curious which earnings and margin paths need to play out for that fair value to hold up? Read on to unpack the full storyline behind these projections.

Result: Fair Value of $13 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, several upside risks remain, including stronger than expected acquisition synergies and tighter hotel supply. These factors could sustain margins and push earnings above current forecasts.

Find out about the key risks to this Apple Hospitality REIT narrative.

Build Your Own Apple Hospitality REIT Narrative

If you see the outlook differently or want to dig into the numbers yourself, you can quickly build a custom view in under three minutes: Do it your way.

A great starting point for your Apple Hospitality REIT research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.